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

question 378

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:

Unfreezing

The initial stage in the change process where existing behaviors or attitudes are challenged to prepare for change.

Refreezing

The final stage of Lewin's change model where newly adopted behaviors, values, or attitudes are solidified into the organization or individual's practices, ensuring the change is sustained over time.

Change Process

The sequence of steps or actions involved in moving an organization or individual from its current state to a desired future state.

Sustainability

The ability to maintain or improve certain processes or states indefinitely without depleting resources or causing harmful impacts.