1. How does a general increase in uncertainty as a result of a failure of a major financial institution lead to an increase in adverse selection and moral hazard problems?
2. What are the two ways that spikes in interest rates lead to an increase in adverse selection and moral hazard problems?
3. How can government fiscal imbalances lead to a financial crisis?
4. How can financial liberalization lead to financial crises?
5. What role does weak financial regulation and supervision play in causing financial crises?
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