Moral Hazard and Adverse Selection Problems Increased in Prominence in the 1980s

question 20

Multiple Choice

Moral hazard and adverse selection problems increased in prominence in the 1980s

• A)as deregulation required savings and loans and mutual savings banks to be more cautious.
• B)following a burst of financial innovation in the 1970s and early 1980s that produced new financial instruments and markets,thereby widening the scope for risk taking.
• C)following a decrease in federal deposit insurance from $100,000 to $40,000.
• D)as interest rates were sharply decreased to bring down inflation.

Comprehending the factors that influence crisis response and intervention strategies.

Acquiring knowledge about community-based approaches in crisis intervention.

Understanding coping mechanisms and positive thinking patterns as stress and anxiety reduction techniques.

Describing situational supports in crisis management and their benefits.

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Definitions:

Attraction-Selection-Attrition (ASA) Theory

A theory in organizational psychology that explains how organizations and their members are aligned, suggesting that organizations attract, select, and retain individuals with similar personalities and values.

Organizational Values

The core principles and beliefs that guide the behaviors and decision-making processes within an organization.

Socialization Agents

Individuals, groups, or institutions that play a role in integrating people into society or specific parts of it, teaching social norms and values.

Socialization Agents

Individuals, groups, or institutions that play a role in integrating and adapting members into a particular social or cultural setting.