Examlex

Solved

Which of the Following Statements Is/are Correct? I

question 327

Multiple Choice

Which of the following statements is/are correct? I. Depository institution managers undertake riskier actions than they otherwise would because of the existence of deposit insurance.
II) Because of the existence of deposit insurance, depositors in savings and loans and other banks have little incentive to investigate the financial stability of these institutions.


Definitions:

Total Output

The total quantity of goods or services produced by an economy or a firm within a specific period.

Marginal Product

The additional output produced by adding one more unit of a specific input, holding all other inputs constant.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent or salaries.

Hail Insurance

A type of insurance policy specifically designed to protect crops from hail damage.

Related Questions