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

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