Which of the Following Statements Is Most Correct

question 10

Multiple Choice

Which of the following statements is most correct?

• A) The higher the deposit insurance limit the lower the risk of moral hazard.
• B) The higher the deposit insurance limit the greater the risk of moral hazard.
• C) Deposit insurance limits do not impact moral hazard, they impact adverse selection.
• D) Increasing the deposit insurance limits above $100,000 would increase coverage for over 50 percent of all depositors.

---

Definitions:

Clinical Interview

A method used in psychology to gather information about an individual's psychological state and functioning through a structured conversation.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a handbook used as a standard criteria for the classification of mental disorders.

DSM-4

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a guide for diagnosing mental disorders.

Psychological Disorders

Patterns of behavioral or psychological symptoms that impact multiple areas of life, leading to distress for the person experiencing them.