Moral Hazard in the Banking System Can Occur Because

question 105

Multiple Choice

Moral hazard in the banking system can occur because:

• A) of high capital requirements.
• B) financial regulations ensure banks are prudent.
• C) banks rarely make risky bets.
• D) of low return on assets.
• E) of high leverage ratios.

---

Definitions:

Sexual Assault

A legal term for forced sexual contact that does not necessarily include penile-vaginal intercourse.

Power

The ability or capacity to influence the behavior of others, the course of events, or the outcome of decisions, often analyzed in social, political, and personal contexts.

Sexual Gratification

The experience of pleasure, especially sexual pleasure, often resulting from sexual activity.

Sexual Harassment

involves unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.