The original purpose of deposit insurance was to
A) prevent bank runs by large depositors.
B) increase the regulatory monitoring of banks.
C) force the banks to invest in less risky investments.
D) prevent bank panics by insuring the small deposits of many people.
Correct Answer:
Verified
Q19: The FDIC charters many state banks.
Q20: The Glass Steagall restrictions separating investment and
Q21: While an individual bank's illiquidity may cause
Q22: Regulations limiting risk taking of financial institutions
Q23: All but one of the following has
Q25: The FDIC's use of purchase and assumption
Q26: Innovation around regulation followed by new regulation
Q27: Bank capital is the most reliable cushion
Q28: Regulations provide financial institutions certain benefits such
Q29: In the United States, fixed premium charged
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