Deposit insurance is one safeguard that has been implemented against a potential bank run. After the financial crisis, the Federal reserve increased the amount of money insured from $100,000 to $250,000. A bank customer has asked why the increased was made and what this means for her money at your bank. 

Explain to the customer how the increase was a tool used by the Federal Preservee to help control the money supply, and discuss the benefits this brings to the customers.

Answer rating: 100% (QA)

Dear customer The decision to increase the amount of money insured by the Federal Reserve from 100000 to 250000 was indeed a deliberate measure taken ... View the full answer