|Question||a. Who is more likely to take bigger risks: a trapeze artist with a safety net underneath or a trapeze artist without a safety net?
b. Who is more likely to take bigger risks with his deposits: a bank CEO in a country where there is a lender of last resort or a bank CEO in a country where there is no lender of last resort?
c. Who is more likely to spend more time searching for a well run, safe bank: a depositor living in a country with government-run deposit insurance or a depositor living in a country without government-run deposit insurance?
d. Do government-run central banks and deposit insurance both increase moral hazard problems, both decrease moral hazard problems, or do they push in different directions when it comes to moral hazard?