A consumer is said to be risk-averse when the consumer
A) purchases assets with a zero nominal interest rate.
B) prefers to hold assets with more non-diversified risk.
C) prefers to not purchase a portfolio of assets.
D) purchases assets with maturities of less than one year.
E) prefers to hold assets with less non-diversified risk.
Correct Answer:
Verified
Q2: The argument that deposit insurance can prevent
Q3: Which asset is least liquid?
A)a chequing deposit
B)a
Q4: The Diamond-Dybvig model does NOT
A)provide an account
Q5: The phenomenon in which an insured individual
Q6: The Diamond-Dybvig model provides a rationale for
Q7: In Canada, the Canada Deposit Insurance Corporation
Q8: In the Diamond-Dybvig model, the bank's deposit
Q9: A stock in Microsoft is
A)more risky than
Q10: In a bank run in the Diamond-Dybvig
Q11: In the Diamond-Dybvig model
A)consumers are not risk
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