19-6 The average cost to the FDIC of each bank failure during the decade of the 1980s was larger than the total cost of all bank failures during the period 1933-79.

Question

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The FDIC's average cost per bank failure during the 1980s was around $400 million, while the total cost of all bank failures from 1933-1979 was approximately $40 billion. Therefore, the average cost per bank failure in the 1980s was indeed larger than the total cost of all bank failures from 1933-1979.

19-6 the Average Cost to the FDIC of Each Bank