The Manner in Which FDIC Deposit Insurance Is Set Up

question 143

Multiple Choice

The manner in which FDIC deposit insurance is set up in the United States encourages banks to

• A) be too conservative in their lending practices.
• B) maintain excess reserves that are too great.
• C) make riskier loans than they otherwise would.
• D) reject some loans that probably would be profitable.

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Definitions:

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Particular difficulties or problems that are unique to a situation or individual.

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The ability to understand and manage one's emotions, as well as the emotions of others, effectively.

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The process that initiates, guides, and maintains goal-oriented behaviors, it is what causes us to act.

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