The Policy of ________ Exacerbated ________ Problems as Savings and Loans

question 52

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 selection
• C) regulatory stringency; moral hazard
• D) regulatory stringency; adverse selection

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Definitions:

Pure Comparative Negligence

A legal doctrine that allows for the plaintiff in a negligence case to recover damages even if they are partially at fault, with the compensation reduced by their percentage of fault.

Fault Percentage

A determination in legal cases, particularly in torts and personal injury, where responsibility or liability is divided among parties based on their contribution to the fault.

Plaintiff's Damages

Financial compensation sought by a plaintiff in a lawsuit from the defendant for loss or injury suffered.

Negligence in Itself

refers to a doctrine whereby an act is considered inherently negligent because it violates a statute or regulation, thereby causing harm that the statute was intended to prevent.