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4.4.2 Market failure in the financial sector

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Question 2

During financial crises, central banks often act as a 'lender of last resort' to prevent systemic collapse. State what is meant by the term 'moral hazard' in this context.

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4.4.2 Market failure in the financial sector Questions

  1. A Level
  2. /Economics
  3. /4.4.2 Market failure in the financial sector