1. What is "moral hazard" and what is its impact on deposit insurance?
2. Describe the four reasons employees write grievances. Select one of those four and give your opinion.
3. Use the analogy of writing home for money to explain the concept of demand during lead time. Be sure to account for the fact that both lead time and demand are variables.
4. A bank is currently exactly meeting its reserve requirements of 10%. If the bank has a deposit inflow of $10,000,000, what is the impact on its required reserve position?