The manner in which FDIC deposit insurance is set up in the United States encourages banks to

Name: The manner in which FDIC deposit insurance is set up in the United States encourages banks to
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FDIC deposit insurance provides a safety net for depositors, which means that banks are not as concerned about the possibility of bank runs or losing their deposit base. This reduces the cost of funds for banks and potentially makes them more willing to take on riskier loans that they may not have otherwise.

The Manner in Which FDIC Deposit Insurance Is Set Up