Which of the Following Is False

Multiple Choice

Which of the following is false?

A) In the early 2000s, moral hazard is a concern among those who are designing an international framework for financial stability.
B) As financial flows across national borders increase, excessive risk taking may occur if financial participants think that a country in crisis will be bailed out.
C) If investors' losses are reduced or eliminated, a moral hazard problem will exist that will encourage excessive risk taking.
D) Previous crises in Mexico, Asia, Russia, and Argentina resulted in massive international financial support so that investors did not lose anything.