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.
Correct Answer:
Verified
Q90: Use the information for the question(s)below.
You own
Q91: Use the information for the question(s)below.
You own
Q92: Use the following information to answer the
Q93: Which of the following statements is FALSE?
A)Leverage
Q94: Which of the following statements is FALSE?
A)Firms
Q96: Use the following information to answer the
Q97: Which of the following statements is FALSE?
A)One
Q98: Use the information for the question(s)below.
You own
Q99: Which of the following firms is likely
Q100: Which of the following statements is FALSE?
A)A
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