You Do Not Worry About How Your Bank Is Investing

question 68

Multiple Choice

You do not worry about how your bank is investing your money because your deposits are federally insured. This is an example of

• A) a positive spillover.
• B) moral hazard.
• C) adverse selection.
• D) irrational behavior.

---

Definitions:

Communicator Style

The characteristic ways in which individuals express themselves verbally and nonverbally in interpersonal communications.

High Performance Standards

A level of excellence or criteria of superior performance that organizations or individuals strive to achieve.

Team Diversity

Presence of a wide range of differences among team members, including but not limited to age, gender, ethnicity, and professional background, which can enhance creativity and problem-solving.

Social Identity Theory

A psychological theory positing that individuals derive part of their identity and self-concept from their perceived membership in a social group.