Adverse selection in insurance requires that
a. all people face the same risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are not risk averse
d. insurers cannot tell higher risk people from lower risk people
d
Economics
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The above table has the balance of the University National Bank. All figures are in millions of dollars. The desired reserve ratio is 20 percent. What is the value of excess reserves held by the University National Bank?
A) $88 million B) $232 million C) $320 million D) $352 million
Economics
Required reserves are a % of loans that the bank must set aside in its vault or in its account with its Federal Reserve Bank
a. true b. false
Economics