Which of the following is a cost of providing federal deposit insurance?
a. Banks have more incentive to monitor loans with the result that their profits have declined and many have failed.
b. There are no significant costs to the insurance, only benefits.
c. Banks have less incentive to act responsibly with the result that they have made riskier loans and some have failed.
d. The insurance makes it more difficult to regulate banks.
e. The insurance makes it more difficult for the fed to run open market operations.
C
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When the labor market is in equilibrium,
A) there is full employment, which means that real GDP equals potential GDP. B) there is full employment but real GDP might be greater than, less than, or equal to potential GDP. C) the real wage rate rises to allow real GDP to equal potential GDP. D) there is excess labor supplied, which keeps real GDP less than potential GDP. E) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP.
Government can intervene in the market through
a. Price floors b. Price ceilings c. Taxes d. All the above
If two nations engage in trade, they will always share equally the gains achieved through specialization
Indicate whether the statement is true or false
An association of workers that presents itself as a single seller of labor on the labor market is called a
a. monopsony b. monopoly c. labor union d. minimum wage e. labor supply curve