19-79 Which of the Following Is a Drawback of Charging

question 62

Multiple Choice

19-79 Which of the following is a drawback of charging flat deposit insurance premiums?

• A)The FDIC acts more like a private property-casualty insurer when charging flat premiums.
• B)It discourages banks from taking risks.
• C)Both high risk and low risk banks are charged the same premium rate.
• D)High risk banks will be charged an unreasonably high premium rate.
• E)Premiums reflect the expected private costs or losses to the insurer from the provision of deposit insurance.

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Definitions:

Attributional Dimensions

The perceived reasons or causal explanations people assign to events and behaviors, influencing their reactions and attitudes.

Unipolar Depression

A form of depression characterized by a persistent low mood and lack of interest in activities, without the manic episodes of bipolar disorder.

Bipolar Disorders

A group of mood disorders characterized by drastic mood swings that include emotional highs (mania or hypomania) and lows (depression).

Problematic Emotional Extremes

Experiencing emotions that are excessively intense or out of proportion to the situation, which can interfere with daily functioning.