Multiple Choice
Which of the following statements is most correct?
A) The higher the deposit insurance limit the lower the risk of moral hazard.
B) The higher the deposit insurance limit the greater the risk of moral hazard.
C) Deposit insurance limits do not impact moral hazard, they impact adverse selection.
D) Increasing the deposit insurance limits above $100,000 would increase coverage for over 50 percent of all depositors.
Correct Answer:
Verified
Correct Answer:
Verified
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