Federal deposit insurance corporation

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Problem: Creation of the FDIC (Federal Deposit Insurance Corporation) encouraged reluctant depositors to put their money into the banking system.

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Question 1: 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?

Question 2: How could higher deposit insurance premiums for banks with riskier assets benefit the economy?

Reference no: EM132422047

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