Which of the Following Contributed the Least to the Collapse

question 39

Multiple Choice

Which of the following contributed the least to the collapse of the FSLIC/FDIC deposit insurance funds?

• A)An increase in interest rate volatility.
• B)Enhanced investment powers granted to thrifts.
• C)Fraudulent behavior induced by the greed of the decade of the 80s.
• D)Fraudulent behavior induced by ineffective regulatory incentives.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive due to market price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell in the market.

Producer Surplus

The difference between the amount a producer is willing to accept for a product and the actual amount they receive in the market, indicating economic benefit.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied.