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Reptor Reptor
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5 years ago
Moral hazard can contribute to high bank leverage in all of the following ways EXCEPT
A) having high capital requirements.
B) bank managers are compensated in part on providing shareholders with high returns on equity.
C) high bank leverage provides shareholders with a potential for a higher return on equity.
D) federal deposit insurance has reduced the incentive of depositors to monitor the behavior of bank managers.
Textbook 
Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
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Wars-Like-ThisWars-Like-This
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5 years ago
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This calls for a celebration Person Raising Both Hands in Celebration
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Smart ... Thanks!
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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