Utility is most closely defined by which of the following terms?

An improvement in technology will lead to a change in demand.

a. true b. false

Regular bank examinations and restrictions on asset holdings help to indirectly reduce the ________ problem because, given fewer opportunities to take on risk, risk-prone entrepreneurs will be discouraged from entering the banking industry

A) moral hazard B) adverse selection C) ex post shirking D) post-contractual opportunism