There is __________ problem with deposit insurance as the insurer shares disproportionately in the __________ risk of banking
A) an adverse selection; upside
B) an adverse selection; downside
C) a moral hazard; upside
D) a moral hazard; downside
D
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If smartwatches are considered substitutes for smartphones, then the decline in the price of smartwatches would, all else equal
A) increase the demand for smartphones. B) decrease the quantity of smartphones demanded. C) decrease the demand for smartphones. D) increase the quantity of smartphones demanded.
It is true that inflation is a
A) continuous increase in the money supply. B) continuous fall in prices. C) decline in interest rates. D) continually rising price level.
The diagram concerns supply adjustments to an increase in demand (D1 to D2) in the immediate period, the short run, and the long run. Supply curves S1, S2, and S3 apply to the
Use the figure below to answer the following question.
A. short run, long run, and immediate period respectively.
B. long run, short run, and immediate period respectively.
C. immediate period, long run, and short run respectively.
D. immediate period, short run, and long run respectively.
Since the global recession of 2008 and the Troubled Asset Relief Program (TARP), U.S. total public debt, as a share, of GDP has hovered around
A. 15%. B. 30%. C. zero. D. 100%.