Suppose that Fly-By-Night Airlines, Inc. has a return of 5% twenty percent of the time and 0% the rest of the time. The expected return from Fly-By-Night is:

Which of the following is a problem that arises in a health insurance market?

A) There are a large number of buyers of various insurance programs. B) There exists a fierce competition between the insurance providers. C) A disproportionate number of high-risk individuals are attracted to buy insurance. D) Only risk-averse individuals buy insurance.

When the Federal Reserve float __________, bank reserves __________

A) rises; fall B) rises; rise C) rise; are unchanged D) rise; change unpredictably