Question: Layla is the CEO of a financial services firm. What action should she take to be sure the firm avoids moral hazards? Multiple Choice She should closely monitor the behavior and performance of new employees to be certain that they have the skills they claimed to have in interviews. Layla must increase hiring and develop influential relationships with government officials so that the firm will be considered "too big to fail." She must create a plan in which government agencies or a consortium of other financial services firms will assume any future debts of the company. Layla should define undue risk-taking, institute strict auditing of loans, and make it clear that the company will fire employees who lend recklessly.