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 opened up more avenues for savings and loans and mutual savings banks to take on more risk.
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) because of all of the above.
E) because of only A and B of the above.