The above figure shows Katie's consumption possibilities. The relative price of a restaurant meal is

Since depositors, like any lender, only receive fixed payments while the bank keeps any surplus profits, they face the ________ problem that banks may take on too ________ risk

A) adverse selection; little B) adverse selection; much C) moral hazard; little D) moral hazard; much

Since 1974, commercial banks importance as a source of funds for nonfinancial borrowers

A) has shrunk dramatically, from around 40 percent of total credit advanced to around 25 percent by 2014. B) has shrunk dramatically, from around 70 percent of total credit advanced to below 50 percent by 2014. C) has expanded dramatically, from around 50 percent of total credit advanced to above 70 percent by 2014. D) has expanded dramatically, from around 30 percent of total credit advanced to above 50 percent by 2014.