By Rescuing Large,troubled Institutions,as Happened During the Great Recession with Institutions

question 53

Multiple Choice

By rescuing large,troubled institutions,as happened during the Great Recession with institutions like AIG and General Motors,policymakers attempted to achieve financial and economic stability in the short run,but their actions may encourage even riskier behaviour on the part of these large institutions in the future if these institutions believe that they,too,will be bailed out if they get in trouble.This risk faced by policymakers is known as

• A) asymmetric information.
• B) quantitative easing.
• C) too-big-to-fail policy.
• D) moral hazard.

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Definitions:

Activity Tolerance

The level or extent of physical exercise or activity that a person is capable of performing without undue strain or exhaustion.

Skeletal Abnormalities

Irregularities or deviations in the structure of the bones that may lead to various health issues or physical disabilities.

Emotional Factors

Elements that influence feelings, mood, and emotional state, impacting behavior, decision-making, and mental health.

Pregnancy Status

The condition of being pregnant or not, including various stages and health considerations of pregnancy.