Which of the Following Is Least Likely to Accompany Financial

question 19

Multiple Choice

Which of the following is least likely to accompany financial consolidation and the development of large,complex banking organizations?

• A) More financial institutions will be considered too big to fail.
• B) The government safety net will be extended to include nonbanking activities.
• C) Moral hazard problems will become less important.
• D) Banks will have greater incentives and opportunities to take on more risk.

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Definitions:

Optimal Performance

The best, most efficient, or most effective level of functioning or activity one can achieve.

Personal Experience

An individual's direct encounter or involvement in particular events, contributing to their unique perspective or knowledge.

Cultural Experience

A series of interactions and engagements with the customs, arts, social institutions, and achievements of a particular nation, people, or other social group.

Incentives

Rewards or motives that encourage individuals to perform certain actions or behaviors.