Which of the Following Is NOT a Potential Problem Due

question 48

Multiple Choice

Which of the following is NOT a potential problem due to federal depository insurance?

• A) Banks have an incentive to make riskier loans than they would otherwise.
• B) Depositors have little incentive to monitor the behavior of the managers of the depository institutions.
• C) Depositors demand greater interest rates on their deposits to compensate them for the riskier behavior of the managers of the depository institutions.
• D) Lenders have less incentive to investigate the credit-worthiness of borrowers.

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Definitions:

Opposite Sex

A term typically used to describe individuals of the gender different from one's own, often in biological or social contexts.

Serial Monogamy

A pattern of engaging in successive monogamous romantic relationships, where an individual has only one partner at a time but multiple partners over their lifetime.

Exclusive Sexual Relationship

A romantic relationship where partners agree to engage in sexual activities only with each other, not allowing sexual activities outside the relationship.

Serial Polygamy

The practice of engaging in multiple marriages one after the other, where an individual legally marries, divorces, and then marries another partner.