Deposit insurance can lead to ________
A) an increase in adverse selection
B) a decrease in bank costs
C) a decrease in bank lending rates
D) an increase in risks banks take on
D
Economics
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If the required reserve ratio is 0.25 and the First National Bank holds $10 million in demand deposits and $5 million in reserves, how much more in demand deposits is this bank capable of creating?
a. $0 b. $0.625 million c. $1.875 million d. $2.5 million e. $10 million
Economics
If the labor force grows faster than the number employed, the
a. unemployment rate will fall. b. unemployment rate will rise. c. labor force rate will rise. d. employment rate will rise.
Economics