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riadik2000 [5.3K]
3 years ago
10

Which of the following is a true​ statement? A. Adverse selection occurs after a transaction has taken place in insurance market

s. B. The FDIC has reduced the problem of moral hazard but not the problem of adverse selection. C. The FDIC has reduced the number of depositors who have lost​ savings, but in doing​ so, has inadvertently encouraged banks to make riskier loans. D. Moral hazard is a problem that occurs before a transaction takes place when asymmetric information is a problem.
Business
1 answer:
Salsk061 [2.6K]3 years ago
8 0

Answer:

C

Explanation:

FDIC gives insurance to depositors. it promises to pay  back a certain amount of the deposits of a banks customers in the case where a bank fails. As a result of this insurance banks have a greater incentive to take on more risky projects because they know that their customers would be protected even the project goes sour and the bank fails.

Due to the services of the FDIC, less depositors have lost money when a bank fails because of the insurance services they provide to depositors.

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Answer:

Option C is the right answer

Explanation:

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6 0
3 years ago
Borchardt Corporation has provided the following data concerning last month’s operations. Direct materials $ 29,000 Direct labor
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Answer: $178,000

Explanation:

The following information can be derived from the question:

We have to first calculate the total manufacturing cost. This will be:

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Add: Direct labor 58000

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Then the manufacturing cost will be:

= 29000 + 58000 + 82000

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We then add the beginning work in progress and then subtract the ending work in progress. This will be:

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3 years ago
A movie theater manager asks an employee, "Should we distribute tickets to the movie on a first-come-first-served basis or throu
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Answer:

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4 0
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(root 1 + Cos A )/(root 1 minus Cos A)​
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