Describe whether each of the following is an example of adverse selection or moral hazard, and why.
a. When I drive a rental car, I drive much more recklessly than when I drive my own car.
b. The sickest people are the ones most likely to sign up for health insurance.
c. Weasel Wannabe took out a business loan from Firstbank to start a hot dog stand, but instead spent the money on a trip to Aruba.
d. Neighborhoods with high levels of student housing and low levels of owner-occupied housing tend to deteriorate more quickly than other neighborhoods.
e. The safest borrowers are unlikely to need bank loans.