Because Deposits Are Insured by the FDIC, Most of Us

question 57

Multiple Choice

Because deposits are insured by the FDIC, most of us do not look at the lending behavior of our banks. This creates a(n) ________ problem.

• A)moral hazard
• B)principled hazard
• C)adverse selection
• D)contrary selection

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Definitions:

Freud

Refers to Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, known for his theories on the unconscious mind and the mechanism of repression.

Mindfulness-Based Interventions

Therapeutic approaches that focus on promoting mental awareness and presence in the moment to improve psychological well-being.

Reduction of Avoidance

A therapeutic goal to decrease the tendency of individuals to avoid facing their fears, usually by gradually exposing them to the feared object or situation.

Genetic Bases

The underlying genetic factors that contribute to the biological makeup and characteristics of an organism, including predispositions to certain conditions.