Ways in which bank regulations reduce the adverse selection and moral hazard problems in banking include
A) a chartering process designed to prevent crooks from getting control of a bank.
B) restrictions that prevent banks from acquiring certain risky assets, such as common stocks.
C) high bank capital requirements to increase the cost of bank failure to the owners.
D) all of the above.
E) only A and B of the above.
D
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Which of the following is the most often used way of controlling cash shortages for small businesses?
a. Using personal money b. Selling receivables c. Laying off employees d. Selling stock
Which of the following is a problem posed by outsourcing to private-sector companies?
A) loss of jobs in domestic market B) increased interference of politicians because of their support C) increased cost of manufacturing goods D) decreased exports to developing countries