All of the Following Are True About Deposit Insurance Except

question 35

Multiple Choice

All of the following are true about deposit insurance except:

• A)Depositors do not need to involve themselves with the risk taking by bank managers
• B)The deposits of a bank customer are insured up to some stated maximum value
• C)There is a creation of potential moral hazard by bank managers
• D)It has not been successful in eliminating bank runs and financial crises

Evaluate the effects of inflation and deflation on the economy and individual financial situations.

Examine factors contributing to variations in unemployment rates across different demographic groups and countries.

Understand the composition and calculation of the labor force and the unemployment rate.

Identify different types of unemployment and their causes.

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Definitions:

Budget Constraint

The cap on the combinations of goods a consumer is able to purchase, determined by their earnings and the cost of those items.

Utility

A measure of satisfaction or happiness that consumers derive from consuming goods and services.

Train Tickets

Tickets that grant the holder the right to travel on a train service, typically specifying the journey details.

Diminishing Marginal Utility

Diminishing Marginal Utility is an economic concept stating that as a person consumes more of a good or service, the satisfaction (utility) gained from consuming each additional unit decreases.