Multiple Choice
The S&L Crisis can be analyzed as a principal-agent problem. The agents in this case,the ________,did not have the same incentive to minimize cost to the economy as the principals,the ________.
A) politicians/regulators;taxpayers
B) taxpayers;politician/regulators
C) taxpayers;bank managers
D) bank managers;politicians/regulators
Correct Answer:
Verified
Correct Answer:
Verified
Q47: Since depositors,like any lender,only receive fixed payments
Q48: The federal agencies that examine banks include<br>A)the
Q49: The Basel Accord,an international agreement,requires banks to
Q50: Regulators attempt to reduce the riskiness of
Q51: Banks will be examined at least once
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
Q56: A system of deposit insurance<br>A)attracts risk-taking entrepreneurs
Q57: A well-capitalized financial institution has _ to