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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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Read 2 more answers
White Company has the following costs for the year: Direct Materials Used $120,000 Direct Labor Incurred 60,000 Manufacturing Ov
nadya68 [22]

Answer:

amount of period costs is 70000

Explanation:

given data

Direct Materials = $120,000

Direct Labor Incurred = 60000

Overhead Incurred = 10000

Selling Expenses=50000

Administrative Expenses = 20000

to find out

amount of period costs

solution

we know here that  period costs for year is the sum of Selling Expenses and the Administrative Expenses in a year

so it will be

amount of period costs = Selling Expenses + Administrative Expenses ...........1

put here both value in equation 1

amount of period costs = 50000 + 20000

so amount of period costs = 70000

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