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a) If you have the chance to abscond with $100,000 at the cost of losing ownership in the bank, would you do it? How does
a) If you have the chance to abscond with $100,000 at the cost of losing ownership in the bank, would you do it? How does your answer depend on the net worth of the bank?
b)if banks are covered by government deposit insurance, why should the government take an active role in closing down failed banks as soon as they can be discovered ?
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