All of the following are proposals designed to discourage excessive risk-taking except:
A)increasing deposit insurance coverage.
B)requiring "skin in the game."
C)altering the pay and incentive structure for rating agencies.
D)reforming executive compensation.

Question

Quizplus · Accepted Answer

Increasing deposit insurance coverage may actually encourage excessive risk-taking as banks would feel more comfortable taking on risky investments knowing that they are guaranteed by insurance. The other options (requiring "skin in the game," altering the pay and incentive structure for rating agencies, and reforming executive compensation) are all proposals that would discourage excessive risk-taking.

All of the Following Are Proposals Designed to Discourage Excessive