Which of the Following Is NOT a Potential Problem Due

question 48

Multiple Choice

Which of the following is NOT a potential problem due to federal depository insurance?

• A) Banks have an incentive to make riskier loans than they would otherwise.
• B) Depositors have little incentive to monitor the behavior of the managers of the depository institutions.
• C) Depositors demand greater interest rates on their deposits to compensate them for the riskier behavior of the managers of the depository institutions.
• D) Lenders have less incentive to investigate the credit-worthiness of borrowers.

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Definitions:

Efficiently Designed Initiatives

Initiatives planned and executed with optimal resource utilization and effectiveness.

Transactional Leaders

Leaders who focus on the exchange process between themselves and their followers, emphasizing clear structures, tasks, and rewards for meeting objectives.

Transformational Leadership

A leadership style that inspires and motivates followers to achieve extraordinary outcomes by transforming their attitudes and assumptions.

Anticipating Future Trends

The practice of predicting upcoming changes in areas such as consumer behavior, technological advancements, and market dynamics.