Which of the Following Reforms Would Reduce the Likelihood of a Future

Multiple Choice

Which of the following reforms would reduce the likelihood of a future financial crisis?

A) Increased regulations that would make it more difficult for lenders to foreclose on borrowers who are delinquent on mortgage payments.
B) Expansion of government-sponsored lending in order to make loanable funds more readily available to sub-prime borrowers.
C) Institutional changes that would strengthen the property rights of shareholders and provide financial managers with a stronger incentive to pursue long-run objectives.
D) Frequent regulatory changes in order to search for and find the combination that would be most effective.