Which of the following statements is correct about adverse selection and moral hazard? 1. Adverse selection and moral hazard are two forms of asymmetric information. II. Adverse selection is a situation where the principal and the agent have conflicting preferences and the agent's behaviour cannot be perfectly observed. III. A consequence of moral hazard is that the agent may take actions that are harmful for the principal. IV. The market for used cars is an example of moral hazard. Select one: A. I and Ill only B. I and IV only C. II and III only D. III and IV only E. None of the choice combinations in A, B, C and D are correct