The Policy of ________ Exacerbated ________ Problems as Savings and Loans

question 92

Multiple Choice

The policy of ________ exacerbated ________ problems as savings and loans took on increasingly huge levels of risk on the slim chance of returning to solvency.

• A)regulatory forbearance;moral hazard
• B)regulatory forbearance;adverse hazard
• C)regulatory agnosticism;moral hazard
• D)regulatory agnosticism;adverse hazard

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Definitions:

Price of X

The specific cost or value associated with a particular item or commodity, denoted as "X."

Price of Y

The monetary cost or value assigned to a good or service, labeled as 'Y'.

Utility Function

A mathematical representation in economics that reflects the satisfaction or utility a consumer derives from consuming a certain quantity of goods and services.

Income

Income earned, particularly in a consistent manner, from employment or investment returns.