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Bank failures tend to occur most often during periods

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6. Bank failures tend to occur most often during periods of: a. Stock market run ups when, like many companies, banks tend to be overvalued b. High inflation when the fixed rate loans of many banks cause their real returns to decrease c. Recessions when many borrowers have a difficult time repaying loans and lending activity slows d. Wars and other civil unrest 7. The government's role of lender of last resort is directed to: 8. Considering the methods available to the FDIC for dealing with a failed bank, the depositors of the failed bank should: 9. Which of the following statements is most correct? 10. If the government did not offer the too-big-to-fail safety net: a. Large banks would be more disciplined by the potential loss of large corporate accounts b. The moral hazard problem of insuring large banks would increase c. The moral hazard problem of insuring large banks would not be affected
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d. The FDIC deposit insurance limits would have to be raised
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