The Policy of ________ Exacerbated ________ Problems as Savings and Loans

Multiple Choice

The policy of ________ exacerbated ________ problems as savings and loans took on increasingly huge levels of risk on the slim chance of returning to solvency.

A) regulatory forbearance; moral hazard
B) regulatory forbearance; adverse selection
C) regulatory stringency; moral hazard
D) regulatory stringency; adverse selection