What is the role of deposit insurance in the banking industry? Deposit insurance reduces the incentive...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
What is the role of deposit insurance in the banking industry? Deposit insurance reduces the incentive to withdraw money and therefore makes bank panics less likely. O Deposit insurance refers to the Federal Reserve having the freedom to pursue policy without political consideration. Deposit insurance guarantees that the federal government will never go bankrupt. O Deposit insurance is the most widely used tool of monetary policy. What is the role of deposit insurance in the banking industry? Deposit insurance reduces the incentive to withdraw money and therefore makes bank panics less likely. O Deposit insurance refers to the Federal Reserve having the freedom to pursue policy without political consideration. Deposit insurance guarantees that the federal government will never go bankrupt. O Deposit insurance is the most widely used tool of monetary policy.
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below Answer I The correct statement is Depos... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these banking questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
-
Ford Company's cost of capital is 13%. It has invested x (million dollars) in current assets. The following function represents the shortage cost of its current assets: S = 9 e- x/3 Find the...
-
A moving rod is observed to have a length of 2.00 m and to be oriented at an angle of 30.0° with respect to the direction of motion, as shown in Figure P39.23. The rod has a speed of 0.995c. (a)...
-
Use mathematical induction to prove each of the following. 1. For every natural number n, 2. For every natural number n, 3. For every natural number n à 2, n(3n 1) 1+3+32 + + 3n-1 (1-1)(1-9 2...
-
Using only the factor formulas given in Table 2.6, derive Equation 7.6 starting with Equation 7.3. TABLE 2.6 Summary of Discrete Compounding Interest Factors. To Find Given Factor Symbol Name P F...
-
You are employed by McDowell and Partners, Chartered Accountants (M&P). A new client, Community Finance Corporation (CFC), approached M&P for assistance. Enviro Ltd. (Enviro) has asked CFC for a loan...
-
2024 2023 2022 Sales $ 78,000 Cost of goods sold 62,400 $ 70,000 60,900 $ 59,000 44,100 2021 $ 58,000 35,100 2020 $ 50,000 30,000 Required: Dollar amounts stated are in thousands. a. Compute trend...
-
Write pseudocode for each example (a through e) in Exercise 2, making sure your pseudocode is structured and accomplishes the same tasks as the flowchart segment. Data From Exercise 2 a. b. D Yes NO...
-
CM2 is considering a significant equipment replacement. Conner and Martin believe that the best time for this equipment replacement is at the end of 2018. However, they are concerned about the effect...
-
Consult the real estate section in your local paper, a real estate listings booklet, or real estate listings on the Web. Choose two homes that you might actually consider within the next 5 to 10...
-
Using your anticipated entry-level take-home pay, calculate the maximum nonmortgage debt payment that you cansafely handle. What are the implications given your actual or anticipated debt for credit...
-
Visit the FAFSA Web site (www.fafsa.ed.gov) to learn about the different student loans available through the government. How do you qualify for federal loans? Using FAFSA's online calculator,...
-
If the marginal product of labor is 2 units of output per day per worker for the first five workers and 0 units of output for the sixth worker onward, draw the total product curve, the average...
-
Suppose that the cost function curve for a natural monopoly is \(C(Q)=48+6 Q\) and the inverse demand function it faces is \(p=38-2 Q\). What are the firm's maximum profits if it cannot price...
-
Heather Smith Cosmetics (HSC) manufactures a variety of products and is organized into three divisions (investment centers): soap products, skin lotions, and hair products. Information about the most...
-
KD Insurance Company specializes in term life insurance contracts. Cash collection experience shows that 20 percent of billed premiums are collected in the month before they are due, 60 percent are...
-
Jonathan writes to Willa, stating Ill pay you $150 if you reseed my lawn. Willa reseeds Jonathans lawn as requested. Has a contract been formed? If so, what kind?
-
A fifteen-year-old minor was employed by Midway Toyota, Inc. On August 18, 2009, the minor, while engaged in lifting heavy objects, injured his lower back. In October 2009 he underwent surgery to...
-
For five years, Henry and James had been engaged as partners in building houses. They owned the equipment necessary to conduct the business and had an excellent reputation. In March, Joyce, who had...
-
Consider the system of Fig. P4.4-5. The filter transfer function is \(D(z)\). (a) Express \(C(z)\) as a function of \(E\). (b) A discrete state model of this system does not exist. Why? (c) What...
-
Find the \(z\)-transform of the following functions. The results of Problem 4.5-3 may be useful. (a) \(E(s)=\frac{6 \varepsilon^{-0.3 T s}}{(s+1)(s+2)(s+3)}\) (b) \(E(s)=\frac{4 \varepsilon^{-0.6 T...
-
Consider again the system of Fig. P4.4-5. Add a sampler for \(E(s)\) at the input. Given \[ G_{1}(s)=\frac{1}{s+10} \quad D(z)=\frac{z-0.5}{z-1} \quad G_{2}(s)=\frac{s}{s^{2}+9 s+23} \] find \(c(k...
McGraw Hills Essentials Of Federal Taxation 2020 Edition 11th Edition - ISBN: 1260433129 - Free Book
Study smarter with the SolutionInn App