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Since Depositors,like Any Lender,only Receive Fixed Payments While the Bank

Question 47

Multiple Choice

Since depositors,like any lender,only receive fixed payments while the bank keeps any surplus profits,they face the ________ problem that banks may take on too ________ risk.


A) adverse selection;little
B) adverse selection;much
C) moral hazard;little
D) moral hazard;much

Correct Answer:

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