In which of the following markets are external benefits most likely to exist?

In the market for insurance

A) sellers are protected from lawsuits brought by buyers. B) demand is perfectly inelastic because, by law, home owners and automobile drivers must have insurance. C) sellers often have better information than buyers. D) buyers often have more information than sellers.

A "forbearance" policy in dealing with weak banks is opposed by the __________ policy

A) prompt corrective action B) too-big-to-fail C) risk-based capital ratio D) leverage ratio