Which of the Following Reforms Would Reduce the Likelihood of a Future

question 38

Multiple Choice

Which of the following reforms would reduce the likelihood of a future financial crisis?

• A) Increased regulations that would make it more difficult for lenders to foreclose on borrowers who are delinquent on mortgage payments.
• B) Expansion of government-sponsored lending in order to make loanable funds more readily available to sub-prime borrowers.
• C) Institutional changes that would strengthen the property rights of shareholders and provide financial managers with a stronger incentive to pursue long-run objectives.
• D) Frequent regulatory changes in order to search for and find the combination that would be most effective.

---

Definitions:

Disappointment

the feeling of sadness or displeasure caused by the nonfulfillment of one's hopes or expectations.

Baby Boom

The significant increase in birth rates observed in various countries, notably the United States, during the post-World War II period, roughly between 1946 and 1964.

Military Couples

Refers to married or committed partners where at least one person is serving in the armed forces, often facing unique challenges such as deployments and relocations.

Rising Prosperity

An economic state where wealth, quality of life, and standard of living are increasing for the general population.