Moral hazard can contribute to high bank leverage in all of the following ways EXCEPT
A) having high capital requirements.
B) bank managers are compensated in part on providing shareholders with high returns on equity.
C) high bank leverage provides shareholders with a potential for a higher return on equity.
D) federal deposit insurance has reduced the incentive of depositors to monitor the behavior of bank managers.
A
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When the price of a product is increased 15%, the quantity demanded decreases 10%. We can therefore conclude that the demand for this product is
A. cross-elastic. B. unitary elastic. C. inelastic. D. elastic.
If the demand curve is a straight line and has the normal negative slope, then as quantity demanded increases, demand
a. becomes more elastic b. becomes more inelastic c. is unitary elastic d. rises and then falls e. is an inverse function of supply
Capital flight shifts the demand for loanable funds to the left
a. True b. False Indicate whether the statement is true or false
The restaurant industry is an example of a(n) ________ industry.
A. perfectly competitive B. oligopolistic C. monopolistically competitive D. monopolistic