While Deposit Insurance Was Designed to Make the Banking Industry

question 185

Multiple Choice

While deposit insurance was designed to make the banking industry more stable,it contributed to the banking crisis of the 1980s because

• A)the FDIC only insured commercial banks
• B)the ceiling on insured deposits was too low
• C)too many banks were not sufficiently insured
• D)depositors became too complacent about the risks that banks were taking
• E)unsafe banks were "kicked out" of the deposit insurance system

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Definitions:

Research Hypothesis

A specific, testable prediction about the expected outcome of a study based on theoretical concepts or previous research.

Research Hypothesis

A specific, testable prediction about the expected outcome in a study.

Symbol Represents

An entity that stands for or suggests another entity or concept, typically by convention or association.

Null Hypothesis

A statement in statistical analysis that proposes there is no significant difference or effect.