Moral Hazard and Adverse Selection Problems Increased in Prominence in the 1980s

Multiple Choice

Moral hazard and adverse selection problems increased in prominence in the 1980s

A) as deregulation required savings and loans and mutual savings banks to be more cautious.
B) following a burst of financial innovation in the 1970s and early 1980s that produced new financial instruments and markets,thereby widening the scope for risk taking.
C) following a decrease in federal deposit insurance from $100,000 to $40,000.
D) as interest rates were sharply decreased to bring down inflation.