19-40 Critics of the current FDIC insurance programs often argue that only uninsured depositors have any incentive to discipline riskier banks.

Question

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Critics of the current FDIC insurance programs argue that insured depositors also have an incentive to discipline riskier banks because they may still suffer the costs of a failure, such as disruptions to their banking services and potential losses on their uninsured deposits.

19-40 Critics of the Current FDIC Insurance Programs Often Argue