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A government can take several steps to reduce asymmetric information problems. Which of the following is least likely to be observed in a nation like
A government can take several steps to reduce asymmetric information problems. Which of the following is least likely to be observed in a nation like Canada?
A.
Regulations that limit bank risk combined with supervision to make sure those regulations are followed.
B.
Provision of a "safety net" via deposit insurance or direct provision of funds to struggling banks.
C.
Regulations on financial markets that require firms to disclose accurate information about themselves.
D.
Development financial institutions that lend at artificially low rates.
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