One reason that financial regulations restrict the assets that banks can own is to:

Name: One reason that financial regulations restrict the assets that banks can own is to:
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The moral hazard that government safety nets provide refers to the notion that banks may be more willing to take risks if they know that the government will bail them out if they fail. By restricting the assets that banks can own, financial regulations can reduce the risk of bank failures and discourage excessive risk-taking.

One Reason That Financial Regulations Restrict the Assets That Banks