Multiple Choice
Which of the following is a drawback of FDIC insurance?
A) FDIC insurance leads to excess industry profits.
B) FDIC insurance has failed to arrest the trend of bank failures.
C) FDIC insurance leads to the problem of moral hazard.
D) FDIC insurance undercuts private insurance companies.
Correct Answer:
Verified
Correct Answer:
Verified
Q192: Why are credit cards not considered part
Q193: The primary purpose of bank regulation is
Q194: Fiat money is money by government decree.
Q195: M<sub>2</sub> consists of M<sub>1</sub> plus savings deposits,
Q196: The one disadvantage of paper money is
Q198: If the reserve ratio is 4 percent,
Q199: The most common form of trading goods
Q200: Discuss some of the government regulations designed
Q201: The value of the deposit multiplier is
Q202: A major problem with commodity money is