Author Question: The manner in which FDIC deposit insurance is set up in the United States encourages banks to A) ... (Read 31 times)

itsmyluck · **on:** Jun 30, 2018

The manner in which FDIC deposit insurance is set up in the United States encourages banks to

A) make riskier loans than they otherwise would.
B) reject some loans that probably would be profitable.
C) be too conservative in their lending practices.
D) maintain excess reserves that are too great.

Question 2

As interest rates fall, the

A) promised payments of bonds fall. B) face values of bonds fall.
C) price of bonds rises. D) price of bonds falls.