Savers have less incentive to care what their bank is doing with ...

[Garrulous]

Savers have less incentive to care what their bank is doing with their money because their deposits are federally insured. This is a problem of
 a. nominal interest
  b. adverse selection
  c. moral hazard
  d. the winner's curse
  e. a positive externality

Question 2

The country of Bananaland has an abundant supply of banana trees and therefore must be a modern industrial economy.
 a. True
  b. False

[SeanoH09]

Answer to Question 1

C

Answer to Question 2

B