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Sagot :
Based on the data given in the database, the leverage ratios from 1995 to 2018 are:
- 1995 - 0.082869
- 1996 - 0.057142
- 1997 - 0.057142
- 1998 - 0.045094
- 1999 - 0.041083
- 2000 - 0.040161
- 2001 - 0.044827
- 2002 - 0.04613
- 2003 - 0.049242
- 2004 - 0.055549
- 2005 - 0.063806
- 2006 - 0.067156
- 2007 - 0.070386
- 2008 - 0.069825
- 2009 - 0.074235
- 2010 - 0.113294
- 2011 - 0.113646
- 2012 - 0.114788
- 2013 - 0.110941
- 2014 - 0.107843
- 2015 - 0.108783
- 2016 - 0.109519
- 2017 - 0.110321
- 2018 - 0.109845
What does the data show?
The leverage ratios shown above are yearly averages calculated by averaging the monthly leverage ratios.
Monthly leverage ratio:
= Bank capital / Assets of commercial banks
The attached line graph shows that moral hazard has increased overtime as banks have taken on more risk.
Find out more on moral hazard at https://brainly.com/question/7290644.
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