Deposit Insurance Contracts Can Be Structured to Reduce Moral Hazard

question 45

Multiple Choice

Deposit insurance contracts can be structured to reduce moral hazard behaviour by

• A)increasing depositor discipline.
• B)increasing stockholder discipline.
• C)increasing regulator discipline.
• D)reducing owner incentives to take risks.
• E)All of these.

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Definitions:

Market-oriented

A business approach focusing on identifying and meeting the needs and wants of customers through the products or services offered.

Marketing Research Data

Information collected specifically to address marketing questions, through methods like surveys, interviews, and analysis of consumer behavior.

Relational Orientation

An approach that emphasizes building and maintaining strong, positive relationships between businesses and their customers.

Long-term Relationship

A commitment between two parties to interact with and support each other over an extended period, often characterized by trust, loyalty, and mutual benefits.