Insurance that protects individuals from the loss of their bank deposits:
a. makes bank officials especially careful about the loans and investments they make.
b. makes it virtually impossible for a bank to fail.
c. is so costly that few banks can afford it.
d. makes depositors less concerned about the safety of their money than the interest rate it is earning.
e. was introduced as a direct result of the financial problems of the 1970s and 1980s.
Question 2
Which of the following statements reflects the belief of the critics of industrial policy?
a. The government allocates scarce resources more efficiently than markets.
b. Industrial policy could evolve into a government giveaway program.
c. Industrial policy gives domestic industries a competitive advantage over important trading partners.
d. Industrial policy encourages unfavorable terms of trade with foreign countries.
e. Industrial policy overprotects the domestic producers.
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