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Question
The government's providing of deposit insurance and functioning as the lender of last resort has significantly:A. decreased the incentive for bank managers to take on risk.
B. increased the amount of regulation of banks required, but has had no effect on bank's incentive to take on risk.
C. increased the incentive for banks to take on risk, but has had no effect on the amount of regulation of banks required.
D. increased the amount of regulation of banks required and increased the incentive for banks to take on risk.
Answer
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