10. Some economists suggest that banks should be charged premiums for deposit insurance based on their levels...

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10. Some economists suggest that banks should be charged premiums for deposit insurance based on their levels of capital. Premiums should be higher if capital is lower. What is the rationale for this proposal? Are there any drawbacks to the idea? LOP8

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Macroeconomics And The Financial System

ISBN: 9781429253673

1st Edition

Authors: N. Gregory Mankiw, Laurence Ball

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