QUESTION 2: Many economists argue that a rescue of a financial institution should protect the institution's creditors from losses but NOT protect its owners: They should lose their equity. Supporters of this idea say that it reduces the moral hazard created by rescuers. (i) Explain how this approach reduces moral hazard compared to a rescue that protects BOTH creditors and equity holders. (ii) Does this approach eliminate the moral hazard problem completely? Please, explain.