All of the Following Might Create Problems from Financial Liberalization

question 18

Multiple Choice

All of the following might create problems from financial liberalization in emerging countries except

• A) ineffective screening of borrowers.
• B) limits on risk-taking.
• C) lax government supervision of banks.
• D) lenders failure to monitor borrowers.

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Definitions:

Framing Error

A mistake made when the context or way in which information is presented leads to incorrect conclusions or decisions.

Positive Or Negative Context

The environment or circumstances that can influence the interpretation or outcome of an action or decision as favorable or unfavorable.

Representativeness Bias

A cognitive bias where an individual inaccurately assesses the likelihood of an event based on how closely it matches their preconceived stereotypes.

Group Is Aggressive

A situation where a collective behaves in a forceful or assertive manner, often to achieve a common goal.