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Question
Which of the following has been a problem faced by the FDIC in its provision of federal deposit insurance?
A) Moral hazard arising from the tendency for the highest -risk banks to be those most interested in obtaining deposit insurance in the first place
B) Adverse selection arising from the tendency for banks to take on more risk after they receive deposit insurance
C) Moral hazard arising from the tendency for banks to take on more risk after they receive deposit insurance
D) A relatively low number of bank failures each year, which has reduced the need for deposit insurance
Answer
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Related questions
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Q:
Which of the following statements is FALSE?
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