The Solution to the Recent Financial Crisis Is

question 8

Multiple Choice

The solution to the recent financial crisis is

• A) better financial disclosure and adequate regulatory supervision of credit markets.
• B) higher borrowing costs for riskier firms.
• C) higher interest rates to discourage risky borrowing.
• D) expansionary fiscal policy.
• E) government extending credit to consumers and firms.

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Definitions:

Surgeon General

A senior medical officer of a branch of the military or public health service, often tasked with overseeing medical policies or issues.

High Cholesterol

A medical condition characterized by an excessive amount of cholesterol in the blood, which can lead to heart disease.

Yogurt

A dairy product produced by bacterial fermentation of milk.

Arnold Schwarzenegger

An Austrian-American actor, former professional bodybuilder, and politician who served as the 38th Governor of California from 2003 to 2011.