Depositors Do Not Check Their Banks Carefully for Stability Anymore

question 77

Multiple Choice

Depositors do not check their banks carefully for stability anymore, because of the federal deposit insurance program. This illustrates the problem of

• A) adverse selection.
• B) externalities.
• C) moral hazard.
• D) public goods.

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Definitions:

Achievement-motivated

A term describing individuals who have a strong desire to accomplish significant tasks, achieve mastery, and reach high standards of excellence.

Strivers

People who exert significant effort toward achieving personal ambitions or societal standards of success, often in the face of obstacles.

Achievers

Individuals who are highly motivated by competition and the attainment of goals, often striving for high levels of success in their personal and professional lives.

Primary Motivation

The fundamental reason or driving force behind an individual's actions or behavior.