Discuss about moral hazard.

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Discuss about moral hazard.

Moral Hazard
We’ve heard a lot of talk about moral hazard over the last few years. Wikipedia defines moral hazard as follows:

In economics, moral hazard occurs when one person takes more risks because someone else bears the burden of those risks. A moral hazard may occur where the actions of one party may change to the detriment of another after a financial transaction has taken place.

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