What effect has the presence of federal deposit insurance had on the banking industry?
A) Banks now hold more excess reserves.
B) Banks have made it more difficult for customers to qualify for loans.
C) Banks have made riskier loans.
D) Depositors have become more vigilant in monitoring the decisions made by managers of their banks.
Correct Answer:
Verified
Q506: Bank examinations by the FDIC help reduce
Q507: Because deposits are insured by the FDIC,
Q508: What would cause a bank run?
A) Depositors
Q509: Due to the existence of the FDIC,
Q510: Which of the following is NOT a
Q511: The Federal Deposit Insurance Corporation
A) increases the
Q513: Bank X had a reputation for asking
Q514: If depository insurance exists, bank managers may
Q515: In which year was the Federal Deposit
Q516: Beginning in late 2000s, the FDIC sought
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