Which of the Following Is a Drawback of Charging Flat

question 54

Multiple Choice

Which of the following is a drawback of charging flat deposit insurance premiums?

• A)The deposit insurer acts more like a private property & casualty insurer when charging flat premiums.
• B)It discourages banks from taking risks.
• C)Both high risk and low risk banks are charged the same premium rate.
• D)High risk banks will be charged an unreasonably high premium rate.
• E)Premiums reflect the expected private costs or losses to the insurer from the provision of deposit insurance.

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Definitions:

Total Resistance

The overall opposition to electric current flow in a circuit, combining the effects of all individual resistors in series and parallel arrangements.

Three Branch

In electrical circuits, a term referring to a system or schematic that divides into three distinct paths or branches.

Total Resistance

The cumulative resistance faced by current in a circuit, calculated by summing individual resistances in series and applying parallel resistance formulas when appropriate.

27 Ω

A specific resistance value, indicating an object or material has a resistance of twenty-seven ohms.