Regular Bank Examinations and Restrictions on Asset Holdings Indirectly Help

question 45

Multiple Choice

Regular bank examinations and restrictions on asset holdings indirectly help to reduce the ________ problem because,given fewer opportunities to take on risk,risk-prone entrepreneurs will be discouraged from entering the banking industry.

• A) moral hazard
• B) adverse selection
• C) ex post shirking
• D) post-contractual opportunism

Recognize the processes involved in concept learning, such as associative learning, hypothesis testing, and the importance of expectations.

Identify the psychological concepts of learned helplessness and its implications.

Understand the cognitive aspects of knowledge acquisition and the role of cognition in learning.

Differentiate between different types of learning (associative, discriminative, operant) and their theorists.

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Definitions:

Conflict Interests

Situations where someone’s personal interests could interfere with their duties or decision-making in a professional or official capacity.

Contract

A contract recognized by law, involving two or more parties, making it enforceable through legal proceedings.

Agency

The service an agent performs on behalf of a principal.

Breach Duties

The failure to perform obligations or duties as prescribed in a contract or by law.