Which of the Following Is a Consequence of Deposit Insurance

question 153

Multiple Choice

Which of the following is a consequence of deposit insurance?

• A) It may induce the officers of a bank to take more risks.
• B) It encourages banks to make loans only to the most credit-worthy customers.
• C) It minimizes the risk of defaulting on loans made to the bank's customers.
• D) It encourages depositors to closely scrutinize a bank's lending activities.

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Diagrams

Simplified drawings showing the appearance, structure, or workings of something.

Charts

Charts are graphical representations of data, designed to visually compare and illustrate quantitative relationships among and between data sets. Types of charts include bar, line, pie, and scatter plots, among others, each serving different purposes in data analysis and presentation.

Graphs

Charts or diagrams that represent data visually, often using lines, bars, or segments.

Generalizability

The extent to which the findings of a study can be applied to broader populations or various settings.