Reserve requirements exist primarily to prevent bank failures

A difference between moral hazard and adverse selection is that

a. moral hazard deals with pre-contractually determined public information b. moral hazard deals with post-contractually determined private information c. adverse selection deals with pre-contractually determined private information d. adverse selection deals with post-contractually determined public information

Which of the statements below is primarily normative in nature?

A. The inequality of income that exists in the United States is partly caused by an unequal distribution of wealth. B. There is an unequal distribution of income in the United States. C. The distribution of income is more unequal in the United States than it is in Japan. D. The distribution of income in the United States should be more equal than it is.