The problem of moral hazard that resulted from federal deposit insurance can be attributed to all of the following except
A) depositors have little incentive to monitor their bank.
B) deposit premiums until recently did not depend on risk.
C) risk aversion by managers of banks plus bank examination.
D) the incentive of bank stockholders to increase risk because they share disproportionately in success but the FDIC shares disproportionately in failure.
C
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The price at which a good or service is traded on international markets is called the ________ price.
A. world B. market C. universal D. international
Why is a government franchise likely to serve as a stronger barrier to entry than possessing technology than competitors don't currently posses?
What will be an ideal response?
Suppose Country A has a closed economy. If Country A's GDP remains constant, but its consumption and government spending increase, then: a. Country A's national saving will decrease. b. Country A's national saving will increase. c. Country A's net taxes will increase
d. Country A's net taxes will decrease.
Commercial banks can borrow reserves directly from the Fed at the
a. prime interest rate. b. federal funds rate. c. discount rate. d. real interest rate.