To Offset the Moral Hazard Problem Created by the FDIC

question 37

Multiple Choice

To offset the moral hazard problem created by the FDIC, government:

• A)created securities to spread the risks.
• B)created the Federal Reserve Bank.
• C)separated banks from other financial institutions.
• D)required individuals to pay a portion of the insurance costs.

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Definitions:

Transient Ischemic Attack

Often called a mini-stroke, a transient episode of neurological dysfunction caused by the loss of blood flow to the brain, spinal cord, or retina, without acute infarction.

Abbreviation

A summarized form of a word or phrase.

Electroencephalogram

A test that measures electrical activity in the brain using electrodes attached to the scalp, used to detect potential problems associated with this activity.

Abbreviation

A brief form of a word or phrase designed to conserve space or eliminate repetition.