Why the fdic is following a too-big-to-fail policy, International Economics

Assignment Help:

Q. Explain why the FDIC is following a "too-big-to-fail" policy of fully protecting all depositors at the largest banks.

Answer: It is a tricky question the FDIC does that even though officially it still applies only to the $100,000 limit. Almost certainly the idea is that the cost to one depositor is unbearable relative to the small cost we all need to pay as a collective. As well there are the issues of political pressure and avoiding blaming the government for mismanaging the safeguards.


Related Discussions:- Why the fdic is following a too-big-to-fail policy

What is a country risk index, Q. What is a country risk index? Explain the ...

Q. What is a country risk index? Explain the categories classified by business environment risk information The country risk index tries to incorporate the economic , geographi

Effects of an increase in the money supply, Q. What will be the effects of ...

Q. What will be the effects of an increase in the money supply on the interest rate? Answer: An enhance in the money supply will origins the interest rate to decrease. This m

Permanent increase in the united states money supply, Q. Using 4 different ...

Q. Using 4 different figures, plot the time paths showing the effects of a permanent increase in the United States money supply on: A. U.S. money supply. B.

Land- and labor-intensive, Q.. "A good cannot be both land- and labor-inte...

Q.. "A good cannot be both land- and labor-intensive." Discuss. Answer: In a two good or two factor models for instance the original Heckscher-Ohlin framework and the factor

What facts could proponents of an expansion of nafta, Q. It is still the c...

Q. It is still the conventional wisdom in the U.S. that compliance with NAFTA needs is having a deleterious effect on U.S. highway safety standards, on U.S. pollution and other en

ECONOMICS, In the Ricardian analysis, why does each trading partner have an...

In the Ricardian analysis, why does each trading partner have an incentive to produce at an endpoint of its production-possibility frontier? Why are prices of factors of production

Ppp, what is ppp

what is ppp

Effects of 9/11 on the size of the eurocurrency markets, Q. What do you exp...

Q. What do you expect would be the effects of 9/11 on the size of the Eurocurrency markets? Answer: Will increase because of fear that foreign deposits in the United States wi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd