If the FDIC Eliminated Its Insurance Program for Deposits, Then

question 45

Multiple Choice

If the FDIC eliminated its insurance program for deposits, then

• A) the banking system would probably fail.
• B) individual depositors would have more incentive to ascertain the soundness and solvency of the bank.
• C) banks would probably hold fewer reserves.
• D) moral hazard would be increased.

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Definitions:

Terminal Bud

The primary area of growth in most plants, typically found at the tip of a stem where it can give rise to new tissue and extend the length of the stem.

Vascular Tissue

The system of tubes in plants that conducts water, minerals, and nutrients.

Phloem

In plants, the network of tissues responsible for carrying sugars and metabolic outputs from the leaves to the lower parts.

Tunicate

Invertebrate chordate that loses most of its defining chordate traits during the transition to adulthood.