Problem
Take the example of a poor individual who does not have any collateral, and therefore cannot obtain a loan from a standard commercial bank. What is the link between financial exclusion and moral hazard in this particular scenario? Draw a graph showing how credit markets can be inefficient when a potential borrower lacks assets that can be used as collateral to gain access to loans from standard commercial banks.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.