Deposit insurance only seems to be viable at the federal level.This is likely due to the fact that:
A) Only a few state funds are large enough to withstand a run on all banks they insure
B) A run on the banks within a state will always spread countrywide
C) The U.S.Treasury backs the FDIC and can therefore withstand virtually any crisis
D) The cost of state insurance is prohibitively high
Correct Answer:
Verified
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