If Depository Insurance Exists,bank Managers May Make Riskier Loans Than

question 99

Multiple Choice

If depository insurance exists,bank managers may make riskier loans than they would have otherwise,which is an example of

• A)regulatory lag.
• B)irrational behaviour.
• C)moral hazard.
• D)adverse selection.

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Definitions:

Endorses Timex

The act of publicly supporting, recommending, or approving of Timex, often done by a famous person or influencer as part of a marketing strategy.

Influence Tactic

involves strategies or actions employed to sway or alter another person's beliefs, attitudes, or behaviors towards a desired outcome.

Bounded Rationality

A concept in decision making that recognizes the limitations of human cognition and information processing, suggesting that individuals are "rationally bounded" to making decisions based on the limited information they have and their finite cognitive capacity.

Cognitive Capacity

The total amount of mental resources available to an individual for carrying out cognitive tasks.