Which of the following is a clear example of moral hazard arising from regulatory policies or central bank interventions in the financial sector?
Insufficient disclosure requirements leading to consumers buying unsuitable pension plans.
Commercial banks offering fewer loans to small businesses due to increased capital adequacy ratios.
Financial institutions undertaking high-risk investment activities because they expect the central bank to act as a lender of last resort.
Regulators capping interest rates on payday loans to protect vulnerable borrowers from predatory lending.