The statement in the question is True.
Explanation:
In Economics, moral hazards happens when somebody expands their introduction to hazard when safeguarded, particularly when an individual faces more challenges since another person bears the expense of those dangers.
Moral hazard is a circumstance wherein one gathering engages in an unsafe occasion realizing that it is ensured against the hazard and the other party will cause the expense. It emerges when both the gatherings have inadequate data about one another. This economic concept is known as moral hazard.
