The existence of the Federal Deposit Insurance Corporation (FDIC):
A. increases the risk of moral hazard in the savings and loan industry.
B. reduces the risk of moral hazard in the savings and loan industry.
C. increases the risk that customers of savings and loans will engage in moral hazard, but reduces the risk that the lenders will engage in moral hazard.
D. reduces the risk that customers of savings and loans will engage in moral hazard, but increases the risk that the lenders will engage in moral hazard.
Answer: A
You might also like to view...
Who was Jean-Baptiste Say? How does his theory (or "law") compare with that of John Maynard Keynes?
What will be an ideal response?
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket is $25
A) no one will buy a ticket. B) Anya's consumer surplus is $1. C) everyone will buy a ticket. D) consumer surplus will be maximized.
Which of the following statements about the 2000 average wages of blacks and Hispanics compared to whites is most accurate?
a. African Americans earn about the same was whites but Hispanics earn about 70% of what whites earn. b. African Americans earn about 70% of what whites earn, while Hispanics earn about 75% of what whites earn. c. Hispanics earn about the same was whites but African Americans earn about 70% of what whites earn. d. African Americans and Hispanics earn less than half of what whites earn.
People who are currently not working but are actively looking for work are officially classified as:
A. unemployed and in the labor force. B. unemployed and out of the labor force. C. employed and in the labor force. D. employed and out of the labor force.