Why might deposit insurance encourage banks to take on too much risk? Is deposit insurance, therefore, a
Question:
Why might deposit insurance encourage banks to take on too much risk? Is deposit insurance, therefore, a bad idea? Briefly explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
Banks can increase the riskiness of their loans and ...View the full answer
Answered By
Ajeet Singh
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
4+ Reviews
24+ Question Solved
Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
Question Posted:
Students also viewed these Business questions
-
A history of deposit insurance on the web site of the FDIC notes: Some have argued at different points in time that there have been too few bank failures because of deposit insurance, that it...
-
Why is it wise to provide insurance for bank deposits? The Federal Deposit Insurance Corporation (FDIC) was established in 1933 to help protect deposits. In the early 1930s, nearly 4,000 banks...
-
Options may not provide funding for non-financial firms, but they are central to modern finance. Not only are millions traded daily, the valuation framework yields insight into corporate decisions...
-
Compute the determinant below. 14 8 8 8 51 1000 8 7 3 0 0 0 8 8 8 8 8 2
-
Choose at least one uncertain quantity of interest to you. For example, you might choose the highest price of gas between now and the end of the year, the highest point the Dow Jones Industrial...
-
On May 6, Jim Ryan borrowed $14,000 from Lane Bank at 7 % interests. Jim Plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11?
-
Find a form for a writ of attachment in California by viewing www.courts.ca.gov/forms.htm.
-
You want to estimate the average SAT score for all students who took the Ethan-Davies SAT Preparation course during the past 2 years. You select a simple random sample of 100 such students from a...
-
PRO-FORMS, INC. J.B. Bryson (-Br to everyone who knew her). General Manager of Pro-Forms. Inc., read the invitation with interest: You are invited to attend a retirement party for Iris David...." Was...
-
Significant Figures 1. How many significant figures are contained in each of the following numbers? 7809700.897 tons 94700. m 28.2890 cm 347600 L 0.07890 pints 120 atoms Rounding 2. Round each of the...
-
Briefly discuss the policy actions the Federal Reserve and the Treasury took during the financial crisis of 20072009.
-
What are the two methods that governments typically use to avoid bank panics?
-
Given that y 1/2 = x 1/3 + 3: a. Show that y = x 2/3 + Ax 1/3 + B, where A and B are constants to be found. b. Hence find y dx.
-
Credit card fraud is considered almost incidental to the potentially more damaging and costly problem of identity theft. Check the Internet for recent statistics on the number of consumers affected,...
-
Visit a personal finance Web site and read about mutual funds. What are the current trends with mutual funds?
-
List the five most common examples of a defined-contribution pian. For each, cite a unique advantage or disadvantage for the employee.
-
What is "churning"? Why is this of concern to individual investors? What is a discretionary account? Who can make buy and sell decisions in such an account? Why might churning be of greater concern...
-
Some students are strongly opposed to having a credit card. Sometimes this opposition is based on family values and sometimes on fear. Other students argue that in today's world it is almost...
-
Which operator is used to process a correlated subquery? a. EXISTS b. IN c. LINK d. MERGE
-
Read Case Study Google: Dont Be Evil Unless and answer the following: Given its mission of providing information to the world, should Google censor searches in China?
-
Maple, Inc., is an S corporation with a single shareholder, Bob Maple. Bob believes that his stock basis in the entity is $50,000, but he has lost some of the records to substantiate this amount....
-
In Problem 44, how much of the Whitman loss belongs to Ann and Becky? Beckys stock basis is $41,300. In problem At the beginning of the year, Ann and Becky own equally all of the stock of Whitman,...
-
Whindy Corporation, an S corporation, reports a recognized built-in gain of $80,000 and a recognized built-in loss of $10,000 this year. Whindy holds an $8,000 unexpired NOL carryforward from a C...
-
d The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC...
-
Compare and contrast the revenue recognition criteria in the two different industries: ( i ) Sale of goods in a supermarket and ( ii ) Construction services. Explain specifically in context to the...
-
Sarah is a CPA working in financial reporting for a large private company. If she accepts gifts from a vendor of her company, and if those gifts are not reasonable given the circumstances, what rule...
Study smarter with the SolutionInn App