A Likely Consequence of Deposit Insurance,ceteris Paribus,is ________

question 2

Multiple Choice

A likely consequence of deposit insurance,ceteris paribus,is ________.

• A)an increase in risk-taking by banks
• B)a bank panic
• C)a credit boom
• D)a reduction in the severity of adverse selection

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Definitions:

Biologically Programmed

Pertains to behaviors, functions, or processes that are inherently determined by the genetic makeup of an organism.

Behaviour

The actions or reactions of an organism or a system, usually in response to its environment or stimuli.

Infants

Young babies, typically from birth to one year old, who are in the early stages of development.

Psychosocial Crisis

A turning point in an individual's life where they face significant challenges in their social and emotional development.