Regulators seek to provide depositor protection to depositors than other FI creditors because deposits are:
A)a critical part of the financial system as they facilitate economic transactions
B)the main source of funding for banks
C)the primary form of savings for individuals and loss of deposits causes significant hardship for depositors
D)All of the listed options are correct.

Question

Quizplus · Accepted Answer

All of the listed options are correct. Deposits are a critical part of the financial system as they facilitate economic transactions, they are the main source of funding for banks, and they are the primary form of savings for individuals. Loss of deposits can cause significant hardship for depositors, which is why regulators seek to provide depositor protection.

Regulators Seek to Provide Depositor Protection to Depositors Than Other