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Which of the following is a true statement?A.The FDIC has reduced the problem of moral hazard but not the problem of adverse selection.B.The FDIC has reduced the number of depositors who have lost savings, but in doing so, has inadvertently encouraged banks to make riskier loans.C.Moral hazard is a problem that occurs before a transaction takes place when asymmetric information is a problem.D.Adverse selection occurs after a transaction has taken place in insurance markets.
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