In Response to the Financial Crisis That Began in 2007

question 120

Multiple Choice

In response to the financial crisis that began in 2007, the government began to bail out banks deemed "too big to fail." Critics of this action argued that this would create the prospect of future bailouts and encourage banks to be fiscally irresponsible in the future. This illustrates

• A) the adverse selection problem.
• B) the moral hazard problem.
• C) the principal-agent problem.
• D) logrolling.

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Definitions:

Web Scraping

The automated extraction of data from websites, using software to access and collect information for various purposes.

Nonresponse Bias

A bias that occurs in survey results when the individuals who do not respond differ significantly from those who do, potentially skewing the data.

30-minute Phone Survey

A research method involving a telephone interview, typically lasting half an hour, used to gather data or opinions from participants.

Skewed Results

Data or outcomes that are disproportionately affected by variables or factors, leading to a distortion from the expected or true distribution.