Multiple Choice
A system of deposit insurance
A) attracts risk-taking entrepreneurs into the banking industry.
B) encourages bank managers to decrease risk.
C) increases the incentives of depositors to monitor the riskiness of their bank's asset portfolio.
D) increases the likelihood of bank runs.
Correct Answer:
Verified
Correct Answer:
Verified
Q51: Banks will be examined at least once
Q52: The S&L Crisis can be analyzed as
Q53: Competition between banks<br>A)encourages greater risk taking.<br>B)encourages conservative
Q54: The collapse of the Bank of Credit
Q55: That several hundred S&Ls were not even
Q57: A well-capitalized financial institution has _ to
Q58: A common element in all of the
Q59: The government safety net creates _ problem
Q60: Regular bank examinations and restrictions on asset
Q61: The result of the too-big-to-fail policy is