Due to the existence of the FDIC, banks
A. may make riskier loans knowing that their depositors are insured.
B. have not changed their behavior even with the existence of insurance.
C. are no longer concerned about net worth.
D. become more cautious in making loans.
Answer: A
You might also like to view...
The anticipated effect of contractionary monetary policy is
A. increase in aggregate demand. B. fall in interest rates. C. increased capital outflow. D. appreciation of the currency.
Referring to Figure 19.1, Mexican goods will become more expensive in the United States if the exchange rate goes from ________ to ________ pesos to the dollar
A) 10; 13 B) 11; 13 C) 12; 11 D) 12; 13
In an ad for insurance, the text reads "Life's an adventure, and there are plenty of perils awaiting your jewelry: a lost or broken stone, theft, accidental loss, damage, mysterious disappearance Have you thought about insurance?"
What is the economic reasoning for an individual to buy insurance? A) Individuals who buy insurance are profit maximizers. B) Individuals who buy insurance are rational. C) Individuals who buy insurance are dishonest and can profit from dishonesty. D) Individuals who buy insurance increase their expected utility by owning insurance.
Because of the recognition internationally of the principles of national sovereignty, nations cannot be affected by the policies of other nations and international governmental organizations
Indicate whether the statement is true or false