Meaning MORAL HAZARD: The risk that the existence of a contract will change the behavior of one or both parties to the contract, e.g., an insured firm will take fewer fire precautions
More terms such as Moral hazard in Dictionary M.
- Definition Maturity:
- Examples For a bond, the date on which the principal is required to be repaid. In an interest rate swap, the date that the swap stops accruing interest moral hazard definition.
- Definition Monetarist:
- Examples An economist who believes that changes in the money supply are the most important determinants of economic activity and economic cycles moral hazard explain.
- Definition Modified Duration:
- Examples The ratio of Macaulay duration to (1 + y), where y = the bond yield. Modified duration is inversely related to the approximate percentage change in price for a given change in yield moral hazard what is.
- Definition Merchant Bank:
- Examples a bank that specializes not in lending its own funds, but in providing various financial services such as accepting bills arising out of trade, underwriting new issues, and providing advice on moral hazard meaning.
- Definition Monitor:
- Examples To seek information about an agent's behavior; a mechanism that provides such information moral hazard abbreviation.
