Multiple Choice
Which of the following statements is/are correct? I. Depository institution managers undertake riskier actions than they otherwise would because of the existence of deposit insurance.
II) Because of the existence of deposit insurance, depositors in savings and loans and other banks have little incentive to investigate the financial stability of these institutions.
A) I only
B) II only
C) both I and II
D) neither I nor II
Correct Answer:
Verified
Correct Answer:
Verified
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