Although the FDIC Was Created to Prevent Bank Failures,its Existence

question 14

Multiple Choice

Although the FDIC was created to prevent bank failures,its existence encourages banks to

• A)take too much risk.
• B)hold too much capital.
• C)open too many branches.
• D)buy too much stock.

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Definitions:

Wage Rate

The standard amount of pay given for work performed, typically expressed on an hourly, daily, or piecework basis.

Marginal Cost Function

The relationship that shows the change in total production cost when producing one additional unit of a good or service.

Market Output

The total quantity of goods and services produced and supplied in a market at a given time.

Carpet Cleaning

The removal of dirt, stains, allergens, and other contaminants from carpets through various cleaning methods to maintain appearance and hygiene.