An increase in investment and economic activity

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Reference no: EM13730446

If financial liberalizations are not managed properly, it can lead to A. reduced B. excessive risk taking and expansions of credit at a rapid pace. Losses from these lending activities will reduce balance sheet values for financial institutions. The reduction in capital will result in A. fewer B. more loans, thus creating A. a decrease B. no change C. an increase in investment and economic activity.

Reference no: EM13730446

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