________ Refers to a Decrease in the Willingness of Banks

question 3

Multiple Choice

________ refers to a decrease in the willingness of banks to lend,while an impairment of the ability of nonfinancial firms to borrow is a consequence of ________.

• A)Adverse selection;moral hazard
• B)Deleveraging;debt deflation
• C)Fire sales;a bank panic
• D)The shadow banking system;agency theory

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Definitions:

Hang Gliding

A recreational and competitive air sport in which a pilot flies a light and non-motorised foot-launched heavier-than-air aircraft called a hang glider.

Control Group

In experimental research, a group of subjects that does not receive the treatment being tested, serving as a benchmark to measure how the other tested groups do.

AIDS

Acquired Immunodeficiency Syndrome, a chronic, potentially life-threatening condition caused by the Human Immunodeficiency Virus (HIV), which damages the immune system.

Anopheles Mosquito

A genus of mosquitoes known to transmit diseases like malaria to humans, characterized by their unique resting position.