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.

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Definitions:

Atomic Orbitals

Mathematical functions that describe the wave-like behavior of an electron in an atom.

Molecular Orbital

A region in a molecule where electrons are most likely to be found; it represents the wave-like behavior of electrons in molecules.

Atomic Orbitals

Mathematical expressions that characterize the wave-like patterns of electrons within an atom.

Orbitals

Mathematical functions that describe the wave-like behavior of electrons in atoms, important for understanding the chemical bonding of atoms.