By Rescuing Large,troubled Institutions,as Happened During the Great Recession with Institutions

Multiple Choice

By rescuing large,troubled institutions,as happened during the Great Recession with institutions like AIG and General Motors,policymakers attempted to achieve financial and economic stability in the short run,but their actions may encourage even riskier behaviour on the part of these large institutions in the future if these institutions believe that they,too,will be bailed out if they get in trouble.This risk faced by policymakers is known as

A) asymmetric information.
B) quantitative easing.
C) too-big-to-fail policy.
D) moral hazard.