Which of the following is most likely to result in market failure in the financial sector?
Commercial banks increasing the interest rate charged on loans to small, pre-revenue start-up companies.
Financial regulators requiring all credit rating agencies to register and publicly disclose their rating methodologies.
Investment bank executives receiving large performance bonuses based on short-term revenue generation rather than long-term asset quality.
Insurance companies offering discounted premiums to policyholders who install telematics tracking devices in their vehicles.
