The Policy of ________ Exacerbated ________ Problems as Savings and Loans

question 92

Multiple Choice

The policy of ________ exacerbated ________ problems as savings and loans took on increasingly huge levels of risk on the slim chance of returning to solvency.

• A)regulatory forbearance;moral hazard
• B)regulatory forbearance;adverse hazard
• C)regulatory agnosticism;moral hazard
• D)regulatory agnosticism;adverse hazard

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Definitions:

Fiscal Policy

A government's use of spending and taxation to influence the economy.

Money Supply

The total amount of monetary assets available in an economy at any specific time, including cash, coins, and balances held in checking and savings accounts.

National Debt

describes the total amount of money that a country's government has borrowed and not yet repaid.

Fiscal Policy

Government policy regarding taxation and spending to influence the economy.