Which of the Following Is One Unintended Consequence of the Federal

question 103

Multiple Choice

Which of the following is one unintended consequence of the federal bailouts in response to the 2008 financial crisis?

• A)Bondholders will charge equity holders for the risk of this abuse.
• B)Equity holders will credibly commit not to take excessive risk by agreeing to very strong bond covenants.
• C)Lenders to corporations considered "too big to fail" may presume they have an implicit government guarantee,thus lowering their incentives to insist on strong covenants.
• D)Managers who earned large bonuses when their businesses did well did not need to repay those bonuses later when things turned sour.

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Definitions:

Internet

A vast network of interconnected computers and servers worldwide, enabling the sharing of information and communication across vast distances instantly.

Sexual Behavior

Actions or practices related to the expression of sexuality or sexual activity between individuals.

Conflict Theorists

Scholars who view social life as a competition, and are especially interested in how inequality within society leads to conflict and causes change.

Sexual Identity

An individual's identification with a particular sexual orientation or gender, often reflecting deeper aspects of self-perception and social identity.