An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better that the company that he is more likely to make a claim on a policy. What is the term used to describe the situation above?

Reasons for the ECB acceding to a bailout of troubled financial sectors in Eurozone nations include all the following, EXCEPT:

A) the desire to recognize bad loans by writing them off to protect the fragile fiscal situation of the troubled nations. B) the desire to prevent a loss of confidence in euro-denominated debt. C) a desire to protect core EU banks. D) a desire to protect the collateral assets in the ECB portfolio.

If purchases of foreign assets by U.S. residents exceed purchases of U.S. assets by foreign residents, then U.S. net capital outflow is positive

a. True b. False Indicate whether the statement is true or false