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While Government Intervention in Financial Crises Sometimes Helps to Stave

Question 13

Multiple Choice

While government intervention in financial crises sometimes helps to stave off a collapse of the system, the danger in such interventions is _________________:


A) People outside banking become envious of the special treatment given to banks.
B) Moral hazard.
C) Greedy bankers get to keep their profits.
D) People raise uncomfortable questions about what caused the crisis.

Correct Answer:

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