If price elasticity of supply is less than 1

For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of moral hazard?

a. After the loan has been made, individuals become careless with their finances b. Individuals most likely to default are the ones most likely to apply for the loan c. Lenders performing a credit check on all potential borrowers d. None of the above

The money multiplier equals:

a. 1 / excess reserves. b. excess reserves / loans. c. required reserve ratio / excess reserves. d. 1 / actual reserves. e. 1 / required reserve ratio.