Deposit Insurance, as mentioned in the LIVE lecture (Week 3), is one way a Governmencould help with 'what type of risk faced by Banks? Choose the most direct one.

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Q: do fast.

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Q: no handwritten notes!

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Moral Hazard

The moral is a person's behavior towards himself /herself, society, organization, and others. Hazard is something that is happening and is not good. A person may be morally good or bad. It depends on his attitude, ethics, integrity, and values. A person may have the highest reverence for money to that for the truth. In this case, the person may lie and it is said that the person is morally bad.