Consulting Case Study: Evaluating FDIC Deposit Insurance You are an analyst at a financial consulting firm advising a client concerned about the stability of the U$.$S$.$ banking system. Your client is particularly interested in understanding the role of deposit insurance and how it prevents bank runs. As part of your analysis, you must review the Federal Deposit Insurance Corporation$$s $($FDIC$)$ report: FDIC $$Options for Deposit Insurance Reform$($May $2023).$ Based on this report, address the following: $2$ i$.$ Explain how FDIC deposit insurance prevents bank runs. Hint: Discuss how insured deposits alter depositor incentives and reduce panic$-$driven withdrawals. ii$.$ What is the role of the Deposit Insurance Fund $($DIF$),$ and how does it ensure that deposit insurance operates without immediate government costs? Hint: Describe how banks contribute to the DIF and why deposit insurance is not directly taxpayer$-$funded. iii. Evaluate the FDIC$$s claim that deposit insurance stabilizes the banking system. Hint: Consider historical evidence from past financial crises and recent bank failures. iv$.$ Policy Recommendation: Suppose the U$.$S$.$ government is considering increasing the deposit insurance limit above $$250,000.$ Would you recommend this change? Justify your response based on economic trade$-$offs, potential risks, and moral hazard concerns