Beginning in late 2010, the FDIC sought to increase the public's confidence in depository institutions by

Question

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The FDIC sought to increase the public's confidence in depository institutions by assessing insurance premiums on banks' total liabilities. This allowed the FDIC to better assess the risk associated with each bank and ensure that they had sufficient funds to cover potential losses. Lowering or eliminating insurance premiums would have reduced the FDIC's ability to fulfill its mission of protecting depositors. Changing the scope of insurance to banks' assets would have also been less effective since liabilities are a better measure of a bank's overall financial health.

Beginning in Late 2010, the FDIC Sought to Increase the Public's