Which of the following has been a problem faced by the FDIC in its provision of federal deposit insurance?
A) a relatively low number of bank failures each year, which has reduced the need for deposit insurance
B) moral hazard arising from the tendency for the highest-risk banks to be those most interested in obtaining deposit insurance in the first place
C) adverse selection arising from the tendency for banks to take on more risk after they receive deposit insurance
D) moral hazard arising from the tendency for banks to take on more risk after they receive deposit insurance
D
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The current account balance is equal to
A) exports - imports - net interest + net transfers. B) exports - imports + net interest + net transfers. C) imports - exports + net interest - net transfers. D) exports - imports - net interest - net transfers. E) imports - exports + net interest + net transfers.
Fishing, the lumber industry, tourism, and even city buildings in Canada are harmed by acid rain, most of which comes from the United States. According to the Coase theorem, the problem is
a. easy to solve because the United States and Canada are geographically close b. easy to solve because the United States and Canada are allies c. easy to solve because international property rights are recognized among capitalist countries d. hard to solve because international negotiations are more costly than domestic ones e. hard to solve because Canadians have property rights to clean, nonacidic rain