The Existence of a Lender of Last Resort Creates Moral

question 72

Multiple Choice

The existence of a lender of last resort creates moral hazard for bank managers because:

• A) they have an incentive to take too much risk in their operations.
• B) officials are likely to undervalue the bank's portfolio of assets.
• C) they are less likely to apply for a direct loan from the central bank.
• D) banks seek loans from the central bank only after exploring other options.

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Definitions:

Organizational Stress Management

Strategies and practices implemented by organizations to reduce workplace stress and enhance employee well-being and productivity.

Work Stressors

are elements related to the job that cause stress, such as deadlines, workload, and conflicts, potentially leading to burnout.

Employee Skill Training

Programs or initiatives designed to enhance the competencies, knowledge, and abilities of employees for improved performance and productivity.

Work Environment

An environment encompassing the physical, psychological, and social conditions under which work is performed.