The textbook states that in attacking moral hazard, having both risk-based capital requirements and risk-based deposit insurance premiums
A) is necessary, to deal with the problem from both sides of the bank's balance sheet.
B) is redundant and that one of the policies should be ended.
C) is necessary in order to deal with the moral hazard of both bankers and depositors.
D) may be redundant in theory but advisable in practice given the difficulty of measuring risk.
D
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Since the 1970s ________ saving in the U.S. has been positive while ________ saving has been generally negative:
A. government; household. B. private; public. C. public; private D. business; household
If planned aggregate expenditure is less than real GDP, some firms will experience unplanned increases in inventories
Indicate whether the statement is true or false
On a graph showing the aggregate demand and aggregate supply curves, stagflation can be represented by a:
a. leftward shift of the aggregate supply curve b. rightward shift of the aggregate supply curve. c. upward movement along the aggregate supply curve. d. rightward shift of the aggregate demand curve. e. upward movement along the aggregate demand curve.
Assume all banks in the system started have a 10 percent required reserve ratio and the Fed made a $20,000 open market purchase. The result would be a(n):
A. $200,000 expansion of the money supply. B. $20,000 expansion of the money supply. C. $20,000 contraction of the money supply. D. infinite contraction of the money supply.