Creation of the FDIC encouraged reluctant depositors to put their money into the banking system.
a) Aside from the benefit of reducing the probability of bank runs, what other positive impact has this policy had in the performance of the overall economy?
b) How could higher deposit insurance premiums for banks with riskier assets benefit the economy?

Answer rating: 100% (QA)

Due to greater coverage of security of the depositsdepositors were not reluctant to depo... View the full answer