3. A large fraction of deposits in the banking system is not insured, i.e., it is above the 250K thresholds. In this question, we will analyze the households' banking accounts. a) FDIC is the government institution that provides deposit insurance. Which type of accounts are covered by this insurance? b) One of the most used surveys about household finances is The Survey of Consumer Finances, which is conducted by the Federal Reserve Board every three years. You may find more information about it here. Go to https://www.federalreserve.gov/econres/scfindex.htm and download "Summary Extract Public Data ." If you want to use Excel, download the CSV version. If you prefer, you may use other versions as well. Each row of the data is a household (not a person). In other words, it gives the total value for household members. The definition of each variable can be found codebook and "SAS macro - Variable definitions." "Net Worth Flowchart" provides a summary of the breakdown of households' assets. Labels in the square brackets indicate the variable name of the associated variable in the data. For example, for money market accounts, you should use the "MMA" variable in the data. To make the survey representative of the US economy, we need to use survey weights. In a sense, survey weights tell us how many households in the US economy are similar to that row. If you sum all the weights, it gives the total number of households in the US. If you divide weights by to sum of weights, it gives the share of households in the US that this row represents. Weights are important to calculate statistics. If not stated otherwise, each statistic we use will be weighted. "WGT" variable in the data is the survey weight. You may want to generate a new variable (let's call it "WGT2") by dividing WGT by to sum of WGT (so that it becomes between 0 and 1). For each household, generate a new variable called "deposits" as the sum of all asset types covered by FDIC. What is the average household deposit? You have to use "WGT2" to calculate the weighted mean. What is the median household deposit? In other words, order households by deposits (the lowest is the first) and find the household in the middle (50% of households are below them). What is the fraction of households whose deposits are not covered by FDIC depending on the "deposits" variable you generated? Think about the previous part again. The survey is at the household level, not the individual level. Why is the "deposits" variable misleading? What type of adjustments can we make to correct those issues? What is the fraction of households whose deposits after the adjustment are not covered by FDIC? What is the share of deposits that are not covered by FDIC in the total deposits? The previous part asked about the share of uninsured households, and this part asked about the share of uninsured deposits. What is the average income of uninsured households? What is the average income of insured households? For each household, calculate the share of deposits in total assets ("ASSET"). What is the average of this variable for uninsured households and insured households?