The Lemons Principle

question 11

Multiple Choice

The lemons principle

• A)indicates that jewels can pass as lemons.
• B)indicates that lemons can pass as jewels.
• C)has the moral hazard problem at it root.
• D)states that making good lemonade is as tough as learning economics.

Know the advantages of recruiting outside an organization and bringing in fresh ideas.

Understand the steps and objectives of the interviewing and selection process within organizations.

Understand the roles and responsibilities in the job selection process.

Differentiate between open-ended and closed-ended questions and their application.

---

Definitions:

FDIC

The Federal Deposit Insurance Corporation, a US government agency that insures deposits in banks and thrift institutions.

Bank Deposits

Money placed into banking institutions for safekeeping. These deposits are typically made into checking or savings accounts.

Bank Failures

Occurrences when banks are unable to meet their obligations to depositors and others, often leading to insolvency and closure.

Store of Value

A function of money allowing individuals to preserve purchasing power for future use.