Although the CDIC Was Created to Prevent Bank Failures, Its

question 72

Multiple Choice

Although the CDIC was created to prevent bank failures, its existence encourages banks to ________.

• A) take too much risk
• B) hold too much capital
• C) open too many branches
• D) buy too much stock

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Definitions:

Additional Unit

Refers to the next unit of a product or service to be produced or consumed, considered in analysis of costs and benefits.

Competitive Employer

An employer who maintains a strong position within the labor market by offering compelling wages, benefits, or working conditions to attract and retain employees.

Inputs

Resources used in the production of goods and services, including labor, capital, materials, and technology.

Marginal Revenue Product

The extra income a company acquires by using an additional unit of input, like labor or capital.