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1. Financial innovation can lead to financial crises? as:
A. financial institutions lack the ability to monitor credit risks of the new financial products.
B. the introduction of the new financial product is immediately followed by tightened financial regulation.
C. it tends to reduce the efficiency of the financial system.
D. with the introduction of the new financial? product, financial institutions reduce their lending at a rapid pace.
2. Which of the following events did not help create a depression out of the American recession in the? 1930s?
A. Debt deflation
B. Failures of agricultural region banks
C. The rise in industrial prices
D. The decline in stock prices
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