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.

---

Definitions:

Chattel

Personal property that is tangible and movable, as opposed to real estate or immovable property.

Tangible Personal Property

Physical property that can be touched and moved, such as furniture, vehicles, and equipment.

Intellectual Property

Various legal rights that grant creators control over their intellectual creations, such as patents, copyrights, trademarks, and trade secrets.

Registration System

A systematic process of recording information or data into an official list or database to ensure its authenticity and reliability.