All of the following statements about banks in Zimbabwe in 2009 are true except
A) Political instability increased the risk of bank failures.
B) Banks were paying 100,000 percent interest on deposits.
C) Few people deposited their money into Zimbabwe banks.
D) The risk of losing deposits at Zimbabwe banks, even if they failed, was low because of deposit insurance. The risk of deposits losing their value at Zimbabwe banks was very high because the inflation rate was 230 million percent, much higher than the 100,000 percent interest.

Question

Quizplus · Accepted Answer

All the other statements (A, B, and C) are true, but D is false. Zimbabwe did not have deposit insurance at that time, meaning that if a bank failed, depositors could lose all of their money. Additionally, the inflation rate was so high that even if people earned 100,000 percent interest on their deposits, the value of their money would still be greatly diminished.

All of the Following Statements About Banks in Zimbabwe in 2009