The Evidence from Banking Crises in Other Countries Indicates That

question 98

Multiple Choice

The evidence from banking crises in other countries indicates that

• A)deposit insurance is to blame in each country.
• B)a government safety net for depositors need not increase moral hazard.
• C)regulatory forbearance never leads to problems.
• D)deregulation combined with poor regulatory supervision raises moral hazard incentives.

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Definitions:

Pagan

A term used to describe religious beliefs or practices that are outside of the world's main religions, particularly in reference to ancient or polytheistic faiths.

Debt

Money owed by one party, the borrower or debtor, to a second party, the lender or creditor.

Political Ideals

Refers to the fundamental beliefs or principles concerning how society should be organized and governed.