Identify the following situation currently faced by the World Bank as adverse selection or moral hazard.
The World Bank has extended loans to the government of a developing country to finance construction. of a canal with a certain future flow of earnings. Now, however, the government has decided to redirect those funds to build a casino that may or may not generate sufficient profits to allow the government to repay the loan.

Solution and Explanation:

Moral Hazard – It is a situation when a  firm or an individual modify their behaviour once the person gets what one was desired to achieve; example, insurance, funding, etc.

Adverse selection - The firm does not information on the consumer, and, sells the product at lower price assessing a lower risk when more information would have made the seller ask for a higher price

a) Moral Hazard

The country changes its project plan after the World Bank extends the loan; if the World Bank has put in conditions that it be used only for a canal, then the loan cannot be used

multiculturalism is a particular subject of debate in certain european nations that are associated with the idea of a single nation within their country. critics of multiculturalism may argue against cultural integration of different ethnic and cultural groups to the existing laws and values of the country.

so yes, multiculturalism can (and usually does) result in the host country/continent losing its culture, identity and linguistics, especially due to the raw numbers of demographic transitions.

explanation:

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.