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Private or State Deposit Insurance Funds Have Not Successfully Prevented

Question 46

Multiple Choice

Private or state deposit insurance funds have not successfully prevented panic because


A) the size of the funds was more than enough to pay all depositors.
B) they overcharged the institutions on their premiums.
C) they did not have a "deep pocket" with unlimited borrowing power like Congress behind them.
D) the regulation of the depositors was not as restrictive as it should have been.

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