One reason customers do not care about the quality of their bank's assets is:
A) most people cannot distinguish an asset from a liability.
B) the quality of a bank's assets changes almost daily.
C) they assume the bank only has high quality assets.
D) with deposit insurance, there isn't any real reason to care; their deposits are protected even if the bank fails.

Question

Quizplus · Accepted Answer

With deposit insurance, customers' deposits are protected even if the bank fails. Therefore, they may not be concerned with the quality of the bank's assets as they have a safety net in place.

One Reason Customers Do Not Care About the Quality of Their