Moral hazard caused by Deposit Insurance Schemes refers to:

a.

The placing of funds from immoral activities into the banking system.

b.

The loss exposure faced by an insurer when the provision of insurance encourages the insured to take less risks.

c.

The loss exposure faced by an insurer when the provision of insurance encourages the insured to take more risks.

d.

The excess profits earned by banks from insured deposits.