Although the CDIC was created to prevent bank failures, its existence encourages banks to ________.

Name: Although the CDIC was created to prevent bank failures, its existence encourages banks to ________.
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The CDIC (Canada Deposit Insurance Corporation) provides insurance for deposits at Canadian banks, which can lead banks to take on more risk than they otherwise would, knowing that their deposits are protected. This phenomenon is known as moral hazard.

Although the CDIC Was Created to Prevent Bank Failures, Its