All of the following involve a moral hazard problem EXCEPT
A) an individual driving carelessly after buying a comprehensive insurance policy for a Ford Pinto.
B) the IMF bailing Mexico out of a financial crisis, with promises to do the same for other nations that might face financial problems.
C) making regular visits to your doctor because you know that you have full healthcare coverage.
D) the requirement of banking institutions that owners invest a substantial portion of their own capital in their bank.
E) membership in FDIC (Federal Deposit Insurance Corporation) by your local bank.
D
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If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the actual inflation rate turned out to be 3.2%, then the real interest rate equals
A) 1.7%. B) 3.2%. C) 3.3%. D) 4.7%.
During what period did the US expand its area by the greatest amount?
a. Since 1970. b. 1910-1950. c. 1880-1900. d. 1800-1850. e. 1781-1795.
Which of the following is not a country or region most likely to be among industrial market countries?
a. Western Europe b. North American c. Australia d. South Asia e. Japan
What are the major goals that unions may pursue in labor negotiations? Are these ever in conflict with one another?