All of the Following Might Create Problems from Financial Liberalization

question 18

Multiple Choice

All of the following might create problems from financial liberalization in emerging countries except

• A) ineffective screening of borrowers.
• B) limits on risk-taking.
• C) lax government supervision of banks.
• D) lenders failure to monitor borrowers.

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Definitions:

Literal "Knee Jerk Response"

A reflexive action of the leg kicking outward when the knee is tapped, used metaphorically to describe an immediate and unthinking response.

Anticipation

The action of expecting or predicting something based on current knowledge or instincts.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of rest with no further conditioning.

Higher-Order Conditioning

Occurs when a strong conditioned stimulus is paired with a neutral stimulus, causing the neutral stimulus to become a second conditioned stimulus.