If the FDIC eliminated its insurance program for deposits, then
A) banks would probably hold fewer reserves.
B) moral hazard would be increased.
C) individual depositors would have more incentive to ascertain the soundness and solvency of the bank.
D) the banking system would probably fail.
C
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Tariffs
A. may be imposed either to raise revenue or to shield domestic producers from foreign competition. B. are excise taxes on goods exported abroad. C. are per-unit subsidies designed to promote exports. D. are also called import quotas.
By spreading her investments out over many different assets, an investor achieves
A) a higher expected return. B) increased risk. C) diversification. D) greater liquidity.
Many manufacturers sell products labeled as having imperfections at a discount at their factory outlets but do not ship these imperfect goods to regular retail outlets. Why?
What will be an ideal response?
Critics argue that a disadvantage of the Earned Income Tax Credit is that it does not effectively target the working poor because many recipients are the teenage children of middle-income families
a. True b. False Indicate whether the statement is true or false