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vodka [1.7K]
3 years ago
8

The "too big to fail" policy of the Fed, whereby some banks are bailed out if they are in danger of failing because they are too

big and could bring the system down, leads to which of the following problems?
a.Adverse selection
b.Externalities
c.Moral hazard ---- Ensured against that risk
d.Public goods
Business
1 answer:
Jlenok [28]3 years ago
5 0

Answer:

c.Moral hazard

Explanation:

Moral hazard can occur when banks take on excessive risk more than they would normally take on because they know they would be bailed out if they fail.

I hope my answer helps you

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Which team member has the most significant role in a team effort?
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D. All members are equally important

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Edgenuity 2020

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2 years ago
Roman loves corn bread. He buys corn meal and wheat flour in order to make corn bread. His recipe calls for two cups of corn mea
ale4655 [162]

Answer:

(B) U(c,f)=min{2c,f}

Explanation:

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A good example usually used in economics is that of a pair of shoe. Having one right and one left of a type of shoe gives a consumer utility at a constant ratio of 1:1, and increasing each leg by multiple of one at every point in time will increase the utility of the consumer, while increasing just only one makes the utility not to change. For instance, having only two left shoe will not give the consumer any utility and make both the left shoe useless.

In the question, the ratio of cups of corn meal, denoted by c, and cups of flour, denoted by f, is 2:1. This implies that to increase the utility of the consumer, c has to increase by a multiple of 2 at every point in time while f has to increase by one at the same point in time to maintain the constant ratio of 2:1. Increasing only c by 2 or only f by 1 will maintain the constant ratio and it will lead to a waste of the increased unit of the affected commodity.

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I wish you the best.

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3 years ago
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Black_prince [1.1K]
<h2>John demonstrates the quality of "Leadership". </h2>

Explanation:

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