If the government did not offer the too-big-to-fail safety net:
A. large banks would be more disciplined by the potential loss of large corporate accounts.
B. the moral hazard problem of insuring large banks would increase.
C. the FDIC deposit insurance limits would have to be raised.
D. the moral hazard problem of insuring large banks would not be affected.
Answer: A
You might also like to view...
Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that
A) monopolies are interested in economic profits and competitive firms are not. B) the monopolization of a perfectly competitive industry does not change the cost structure of the industry. C) the economies of scale exist only in perfectly competitive industries. D) the marginal cost curve of a monopolist is different from that of a perfectly competitive firm.
Which of the following is the best measure of size of government as a share of the economy?
A) total government expenditures as a percentage of GDP B) the supply of money as a percentage of GDP C) public consumption plus private investment as a percentage of GDP D) private consumption as a percentage of Gross Domestic Product
Which of the following is not an example of a capital input?
A. ?A person's skills and abilities, which can be employed to produce valuable goods and services. B. ?Factories and offices where goods and services are produced. C. ?Tools and equipment. D. ?Computers used by a company to record inventory, sales, and payroll. ?
Knowledge Resources
What will be an ideal response?