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A. Suppose that you are running a bank and your depositors accounts are insured up to $250,000 by the federal government. What moral-hazard problems might

A. Suppose that you are running a bank and your depositors accounts are insured up to $250,000 by the federal government. What moral-hazard problems might arise?

B. Give an example of an adverse-selection problem in the insurance industry and an example of a moral-hazard problem in the insurance industry.

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