Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: azncindy619 on Jul 21, 2019
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The existence of the Federal Deposit Insurance Corporation (FDIC):
◦ reduces the risk that customers of savings and loans will engage in moral hazard, but increases the risk that the lenders will engage in moral hazard.
◦ increases the risk that customers of savings and loans will engage in moral hazard, but reduces the risk that the lenders will engage in moral hazard.
◦ reduces the risk of moral hazard in the savings and loan industry.
◦ increases the risk of moral hazard in the savings and loan industry.
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increases the risk of moral hazard in the savings and loan industry.