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The 'procyclical leverage' phenomenon observed during financial crises is characterized by: a. Regulatory policies that require increasing capital buffers in economic upturns. b. The tendency
The 'procyclical leverage' phenomenon observed during financial crises is characterized by: a. Regulatory policies that require increasing capital buffers in economic upturns. b. The tendency of financial institutions to amplify business cycles through their lending practices. V c. A consistent increase in leverage regardless of economic conditions. d. Banks reducing leverage during economic booms and increasing it during downturns
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