7. Governments provide incentives or threaten banks to make bad loans for political ends. This is
called “__________.”
A) classical capitalism
B) mercantilism
C) crony capitalism
D) market socialism
8. To minimize the problem of moral hazard, bank regulators sought ways under _________
to establish supervision and regulation standards for internationally active banks:
A) the Basel Capital Accord
B) the Louvre Accord
C) the Yokohama Declaration
D) the Cairo Declaration
7. Government is using/promoting a wasteful use of the available resources in a manner that fits its political motive. Capitalism is a type of economic model where the economic motive is diluted by solely profit making and in a way that is short lived. This is a clear example of crony capitalism. Thus, the correct option is c) crony capitalism.
7. Governments provide incentives or threaten banks to make bad loans for political ends. This is...
7. Governments provide incentives or threaten banks to make bad loans for political ends. This is called “__________.” A) classical capitalism B) mercantilism C) crony capitalism D) market socialism
8. To minimize the problem of moral hazard, bank regulators sought ways under _________ to establish supervision and regulation standards for internationally active banks: A) the Basel Capital Accord B) the Louvre Accord C) the Yokohama Declaration D) the Cairo Declaration