Which of the following is a moral hazard that a central bank could face?
A) Banks that are bailed out may have the incentive to take reckless decisions.
B) Banks may maintain a higher-than-proportionate quantity of risk-weighted assets.
C) Banks may accept large deposits from institutional investors.
D) Banks may lend to non-banks and households at high rates of interest.
Correct Answer:
Verified
Q1: A _ lends to non-banks, including households
Q2: Which of the following is true of
Q4: Which of the following will determine the
Q5: What is meant by liquidity?
A) It is
Q6: Narrow measures of money will include _.
A)
Q7: Which of the following could lead to
Q8: _ are current accounts which provide instant
Q9: _ are involved in brokering very large
Q10: A capital adequacy ratio measures:
A) the value
Q11: The risk that the collapse of one
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