All of the following might create problems from financial liberalization in emerging countries except
A) ineffective screening of borrowers.
B) limits on risk-taking.
C) lax government supervision of banks.
D) lenders failure to monitor borrowers.

Question

Quizplus · Accepted Answer

Limits on risk-taking would actually help prevent excessive risk-taking and potentially harmful financial activities. The other options all contribute to potential problems with financial liberalization by allowing for inadequate oversight and monitoring of financial institutions and borrowers.

All of the Following Might Create Problems from Financial Liberalization