What is the criticism leveled against deposit insurance by the FDIC?
Depositors who are freed from any risk of loss from a failing bank will not bother to shop around for safer banks. This problem is an example of what is called the moral hazard problem: the general idea that, when people are well-insured against a particular risk, they will put little effort into making sure that the risk does not occur. In this context, some of the FDIC's critics argue that high levels of deposit insurance actually make the banking system less safe.
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Which of the following is an example of differentiated goods?
A) Books and cosmetics B) Fuel and water C) Potatoes grown by different farmers D) Tea and energy drinks
The principal reason(s) that so much U.S. currency is held outside the U.S is (are) ________
A) many people around the world trust the U.S. dollar more than any other currency B) banks all around the world find it convenient to hold large amounts of U.S. dollars C) U.S. citizens and corporations spend a lot of dollars abroad D) all of the above E) none of the above