Which of the following is a true statement?

A$.$ Moral hazard is a problem that occurs before a transaction takes place when asymmetric information is a problem.

B$.$ Adverse selection occurs after a transaction has taken place in insurance markets.

C$.$ The FDIC has reduced the problem of moral hazard but not the problem of adverse selection.

D$.$ The FDIC has reduced the number of depositors who have lost savings, but in doing so$,$ has inadvertently encouraged banks to make riskier loans.