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1. In 2008, as financial crisis began to unfold the U.S. the FDIC raised the limit on insured losses to bank depositors from $100,000 per

1. In 2008, as financial crisis began to unfold the U.S. the FDIC raised the limit on insured losses to bank depositors from $100,000 per account to $250,000 per account. How would this help stabilize the financial system? Question 2. If interest rates decline, which would you rather be holding, long-term bonds or short-term bonds? Why? Which type of bond has the greater interest-rate risk

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