When an insurance company specifies certain precautions that an insured person must take it is trying to control for moral hazard.

In enforcing the legal system, the government in a market capitalist economy acts to:

A) enforce contracts. B) enforce property rights. C) discourage fraud. D) do all of the above.

One purpose of regulation of financial markets is to

A) limit the profits of financial institutions. B) increase competition among financial institutions. C) promote the provision of information to shareholders, depositors and the public. D) guarantee that the maximum rates of interest are paid on deposits.