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Moral Hazard Financial Glossary

What is it? Refers to human natures increased incentive to take risk when insured.

Finance Term Definition Added By: Ryan

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Other Similar Finance Terms:

Financial Term Margin Account is When an investor borrows from his/her broker to finance the purchase of an asset. The Fed determines what the maximum borrowing rate is.

Financial Term Unsecured is A loan where no collateral or security is given or charged to the lender. Unsecured lending is viewed as higher risk than secured lending and interest rates are generally higher to reflect this.

Financial Term Surrender Value is The amount of money a policyholder would receive after canceling a life insurance policy.

Financial Term Transaction Date is The date goods and services are purchased, or the date a cash advance is made.

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