Which of the following is a consequence of deposit insurance?
A) It may induce the officers of a bank to take more risks.
B) It encourages banks to make loans only to the most credit-worthy customers.
C) It minimizes the risk of defaulting on loans made to the bank's customers.
D) It encourages depositors to closely scrutinize a bank's lending activities.
Answer: A) It may induce the officers of a bank to take more risks.
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If the demand curve is very inelastic and the supply curve is very elastic in a market, then the sellers will bear a greater burden of a tax imposed on the market, even if the tax is imposed on the buyers
a. True b. False Indicate whether the statement is true or false
Caroline sharpens knives in her spare time for extra income. Buyers of her service are willing to pay $2.95 per knife for as many knives as Caroline is willing to sharpen. On a particular day, she is willing to sharpen the first knife for $2.00, the second knife for $2.25, the third knife for $2.75, and the fourth knife for $3.50 . Assume Caroline is rational in deciding how many knives to
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