If depository insurance exists, bank managers may make riskier loans than they would have otherwise, which is an example of

Name: If depository insurance exists, bank managers may make riskier loans than they would have otherwise, which is an example of
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Depository insurance eliminates some of the risk associated with banking, leading bank managers to take more risks in lending in order to increase profits. This phenomenon is known as moral hazard.

If Depository Insurance Exists, Bank Managers May Make Riskier Loans