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:

Organizational Culture

The collective principles, convictions, and standards that affect how workers within a company perceive, experience, and act.

Shared Beliefs

Common values or convictions held by a group of people or within an organization.

Behaviour Guide

A set of recommendations or rules designed to influence or direct how individuals act in specific situations.

Resistance to Change

The opposition or pushback encountered when individuals or organizations face alterations in their normal procedures or ways of doing things.