From a macroeconomic standpoint, deposit insurance is desirable because
A) it preserves public confidence in the banking system.
B) it replaces deposits that would otherwise be lost.
C) it improves consumer welfare since the depositors need not monitor the bank anymore.
D) a and b only
E) all of the above
Correct Answer:
Verified
Q1: Which of the following statements illustrate the
Q2: Low charter values can induce the banks
Q4: The reasons why we need deposit insurance
Q5: The forces responsible for the banks' risk-taking
Q6: Which of the following factors is the
Q7: Suppose that a demand deposit contract is
Q8: The reason why the deposit insurance has
Q9: A product-based instrument
A)entitles its buyer to purchase
Q10: Due to the sequential service constraint and
Q11: The reasons why private arrangements like
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