________ Encourage Banks to ________, Which ________

Multiple Choice

________ encourage banks to ________, which ________.

A) Loans; increase lending; lowers market liquidity
B) Increased capital requirements; take more risk; leads to future bank bailouts
C) Increased leverage ratios; take less risk; strengthens the banking industry
D) Lower return on assets; hold more cash; increases the "lemon" problem
E) Bailouts; take more risk; worsens the moral hazard problem