Because Deposits Are Insured by the FDIC, Most of Us

question 462

Multiple Choice

Because deposits are insured by the FDIC, most of us do NOT look at the lending behavior of our banks. This creates a(n) ________ problem.

• A) moral hazard
• B) principled hazard
• C) adverse selection
• D) contrary selection

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Definitions:

Terrible Things

Generally refers to events or actions that are extremely bad, horrifying, or devastating in nature.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often characterized by delusions, hallucinations, and cognitive difficulties.

Negative Symptoms

In psychiatry, refers to the absence or diminution of normal psychological capabilities, such as motivation or emotional expression, especially in schizophrenia.

Absences

Instances of not being present where one is expected, often noted in contexts like employment or school attendance.