The author is trying to find the underlying cause of:
Explanation:
The underlying point that the author makes throughout the passage is that there is a moral hazard which incentivizes lenders to lend without undertaking due diligence. This creates a financial crisis. The other options are not the focus of the passage. Hence, the correct answer is option 1.
» Your doubt will be displayed only after approval.
Help us build a Free and Comprehensive Preparation portal for various competitive exams by providing us your valuable feedback about Apti4All and how it can be improved.