A system of deposit insurance

A) attracts risk-taking entrepreneurs into the banking industry.
B) encourages bank managers to decrease risk.
C) increases the incentives of depositors to monitor the riskiness of their bank's asset portfolio.
D) increases the likelihood of bank runs.


A

Economics

You might also like to view...

Suppose that the chain-weighted index for GDP in Panama was 180 in 2015 and 188 in 2016. The inflation rate between those two years was approximately

A) 1.1 percent. B) 4.4 percent. C) 8 percent. D) 10.4 percent.

Economics

Refer to the scenario above. What is the expected value of the gamble?

A) 0 B) $50 C) $75 D) $100

Economics

To understand why someone cannot get a job, it helps to know the three types of unemployment. List the three types of unemployment and explain what causes each type

What advice for finding a job would be appropriate for someone in each type of unemployment?

Economics

Which of the following portions of the national debt impose a net interest burden on the federal government?

a. treasury bonds held by government agencies b. treasury bonds held by private investors c. treasury bonds held by the Federal Reserve system d. treasury bonds held in the Social Security Trust Fund

Economics