There was a question in one test series that I am writing where this question was asked what is moral hazard in economic survey?
1) Farm loan waivers discourage people to pay loans
2) Writing off debts / NPA by banks increases default
3) Some option but very logical
4) Once govt helps banks clear NPAs , banks will do reckless lending
I marked all as correct as all can be equally correct. What should be the correct answer?