Discuss the role of more "transparency" in reducing the risk of financial crisis
What will be an ideal response?
Students should discuss the Asian crisis where foreign banks lent money to Asian enterprises without any clear idea of what the risks were, and then pulled their money out equally blindly when it became clear those risks were larger than they anticipated.
You might also like to view...
As a result of moving more decision making from the periphery of the organization toward the center, typically
a. the flow of information to the decision maker that is relevant to the decision should be enhanced b. the flow of information from the decision maker that is relevant to the decision should be enhanced c. the incentive structure for the decision maker should be strengthened d. the incentive structure for the decision maker can be eliminated
Jorge, a computer programmer, was laid off when his firm went out of business. He began to look for work, but was struck by a car and his hands and one leg were broken. He is unable to use the computer to seek jobs, or to go to interviews for jobs. It is now week 5 of 6 weeks in his cast. According to the current rules, Jorge will probably be classified as:
a. employed b. unemployed c. out of the labor force d. unemployable