The Japanese Banking System Went Through a Cycle of ________

question 67

Multiple Choice

The Japanese banking system went through a cycle of ________ in the 1990s similar to the one that occurred in the U.S. in the 1980s.

• A)regulatory forbearance
• B)policy antagonism
• C)regulatory ignorance
• D)policy renewal

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Definitions:

Rational Choice

A theory in economics and sociology that suggests individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Irrational Choice

A decision made contrary to the conventional understanding of economic rationality, not maximizing utility.

Incentives

Rewards or penalties that motivate individuals to perform an action or avoid it.

Economic Analysis

A systematic approach to determining the optimal use of scarce resources, involving comparison of two or more alternatives in achieving specific objectives under the given assumptions.