Which of the following policies are intended to reduce the likelihood of future financial crises?
A) restricting the size of financial firms
B) limiting excessive risk taking
C) reforming regulatory agencies
D) all of the above

Question

Quizplus · Accepted Answer

All of the policies listed - restricting the size of financial firms, limiting excessive risk taking, and reforming regulatory agencies - can play a role in reducing the likelihood of future financial crises. Restricting the size of financial firms can prevent them from becoming "too big to fail," while limiting excessive risk taking can ensure that firms are not taking on excessive amounts of risk that could lead to collapse. Finally, reforming regulatory agencies can ensure that they are better equipped to oversee the financial sector and prevent abuses and excesses.

Which of the Following Policies Are Intended to Reduce the Likelihood