Question
5. a. Prior to 1934, there was no federal deposit insurance (i.e., no FDIC). Explain how the lack of deposit insurance would have made liquidity
5. a. Prior to 1934, there was no federal deposit insurance (i.e., no FDIC). Explain how the lack of deposit insurance would have made liquidity management more important and more difficult than it is now.
b. Deposit insurance is said to be great for the banking system and the economy. Why?
c. Deposit insurance has one big drawback. What is it? Explain.
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Principles Of Finance With Excel
Authors: Simon Benninga, Tal Mofkadi
3rd Edition
0190296380, 9780190296384
