Because banks engage in regulatory arbitrage, the Basel Accord on risk-based capital requirements may result in
A) reduced risk taking by banks.
B) reduced supervision of banks by regulators.
C) increased fraudulent behavior by banks.
D) increased risk taking by banks.
D
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Pollution damages the environment we live in. An economist would advise that we reduce air pollution: a. as long as the marginal benefit from air pollution reduction outweighs the marginal cost of achieving the reduction. b. until the total benefit from air pollution reduction just equals the total cost of pollution reduction
c. until air pollution levels reach near-zero levels. d. to the levels experienced in the 1950s when air was much cleaner near big cities.
The social insurance provided by the government is insurance against
a. floods, hurricanes, and other natural disasters b. loss of funds in private pension programs c. sizable income losses when people retire or when they become disabled or unemployed d. loss of value of stocks and bonds when corporations go bankrupt e. loss of funds in private pension plans, retirement annuities, and unemployment