If FDIC tends to charge depository institutions less than the full cost of deposit insurance in its risk-based deposit premium system,
A) the banks will be upset with FDIC.
B) the risk-based premium system will adequately "tax" the excess risk returns of banks that have made risky investments.
C) the moral hazard associated with deposit insurance is still present.
D) the regulator will not have to worry about banks taking excessive risk.
Correct Answer:
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