Regular Bank Examinations and Restrictions on Asset Holdings Indirectly Help

question 6

Multiple Choice

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

• A) increase; encouraged
• B) increase; discouraged
• C) reduce; encouraged
• D) reduce; discouraged

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Definitions:

Ganglion Cell Axons

The nerve fibers of ganglion cells in the retina that transmit visual information from the eye to the brain.

Cerebral Area

Specific regions of the brain's cerebral cortex associated with various functions such as sensory processing, motor control, and cognition.

Optic Nerve

This nerve carries information related to vision from the retina directly to the brain.

Tympanic Membrane

The thin membrane that separates the outer ear from the middle ear, also known as the eardrum, which vibrates in response to sound waves.