Define each of the following terms Moral Hazard Bank Chart

Define each of the following terms

- Moral Hazard

- Bank Charter

- Dual Banking

- System Government-sponsored deposit insurance:

- Regulation Q

Solution

Moral hazard is the risk that the receiver of funds will not use the money as was intended or they may take unnecessary risks or not be vigilant in reducing risk.

Bank charter is an official document permitting a banking company to commence business as a bank. It authorizes banking operations. A bank charter includes the articles of incorporation and the certificate of incorporation. The charter specifies the rights of a banking institution

Dual banking system is the system of banking that exists in the United States in which state banks and national banks are chartered and supervised at different levels

Government-sponsored deposit insurance typically encourages individual depositors to monitor their banks\' behavior in accepting risk

Regulation Q\'  is a Federal Reserve Board rule that prohibited banks from being able to pay interest on deposits within checking accounts. Regulation Q was enacted in accordance to the Glass-Steagall Act of 1933 to limit loan sharking and other unseemly actions