Bank Failures and Mergers Have Caused the Number of Commercial

question 133

Multiple Choice

Bank failures and mergers have caused the number of commercial banks in the U.S.to decline from around ________ in the 1970s to below ________ today.

• A) 25,000; 10,000
• B) 15,000; 8,000
• C) 25,000; 20,000
• D) 15,000; 5,000

Understand methods to mitigate moral hazard in insurance through co-pays and deductibles.

Calculate consumer surplus in a given market scenario.

Recognize the correlation between asymmetric information, adverse selection, and market outcomes.

Understand the relationship between consumer and producer surplus and market efficiency.

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Definitions:

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Total Assets

The sum of all current and non-current assets owned by a company.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting a company’s profitability.