Deposit insurance shields depositors from the adverse effects of risky decisions,and thus
A) encourages riskier behaviour on the part of managers of depository institutions.
B) encourages depositors to monitor the managers of depository institutions more closely.
C) encourages moral hazard on the part of depositors.
D) generates a more efficient banking system.
Correct Answer:
Verified
Q87: The CDIC can
A)charge all banks different rate.
B)pay
Q88: If there are $5 million in excess
Q89: If the Bank of Canada decreases the
Q90: The more people decide to hold currency,the
A)larger
Q91: The Canadian Deposit Insurance Corporation insures
A)banks against
Q93: The CDIC fee system encourages depository institutions
Q94: If depository insurance exists,bank managers may make
Q95: If there are zero excess reserves in
Q96: Bank runs are a possibility because
A)the CDIC
Q97: The actual money multiplier is less than
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents