Question: The term moral hazard describes increases in risky behavior resulting from efforts to make that behavior safer. How does the concept of moral hazard apply

The term "moral hazard" describes increases in risky behavior resulting from efforts to make that behavior safer. How does the concept of moral hazard apply to deposit insurance and other bank regulations? Can you think of any arguments in favor of getting rid of the FDIC? How might doing so improve the safety of banks?

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