QUESTIONS Which of the following are reported as assets on a bank's balance sheet? A. Borrowings B. Savings deposits OC. Bank capital D Reserves O E Only A and B of the above QUESTION 6 What of the following is the major problem with government safety nets, such as deposit insurance, during the formative stages of a financial crisis? O A. Adverse Selection problem, borrowers who are more likely to default seeks loans B. Moral Hazard problem, banks take on greater risks