In Australia the government insures households bank deposits. This provides protection to depositors of up to $250, 000 per account holder per bank in the event of a bank failing. New Zealand is one of the few countries in the world that does not provide deposit insurance for household bank deposits. The New Zealand government is evaluating whether to start providing deposit insurance. You are hired as a consultant to the New Zealand government. Explain the reasons why other countries have introduced deposit insurance. Outline at least one benefit and one cost of deposit insurance.

You might find this article useful:https://theconversation.comzs-plan-for-deposit-insurance-falls-well-short-of-protecting-peoples-savings-117890

Please limit your answer to 300 words.

Marking criteria

Your answer will be marked according to the following categories.

• Clarity of explanation
• Use of economic reasoning
• Ability to outline one benefit and cost of deposit insurance

You will be evaluated on a scale between 1 and 7 for each category and stand to gain between40and-20academia points by answering this question.

Note on sensitive content

Please insert aDISCLAIMERat the beginning of your answer if it includes sensitive topics, such as racism, ageism, classism, discrimination, sexism, illegal activities, ethically questionable behaviors, experiences of grief and loss, trauma, or violence. Certain topics can trigger flashbacks, ruminating and emotional reactions if general acknowledgement is not provided, or the tone is not sober and respectful, especially when judgment or hurtful ideas are expressed. If such topics are involved, the marker can elect not to review the answer and obtain a different one by emailing s..t@lionsheartstudios.com.

Deposit insurance In Australia the government insures households bank deposits. This provides protection to depositors of up to $250, 000 per account holder per bank in the event of a bank failing. New Zealand is one of the few countries in the world that does not provide deposit insurance for household bank deposits. The New Zealand government is evaluating whether to start providing deposit insurance. You are hired as a consultant to the New Zealand government. Explain the reasons why other countries have introduced deposit insurance. Outline at least one benefit and one cost of deposit insurance. You might find this article useful: https://theconversation.comzs-plan-for-deposit-insurance-falls-well-short-of-protecting-peoples-savings-117890 Please limit your answer to 300 words. Marking criteria Your answer will be marked according to the following categories. . Clarity of explanation . Use of economic reasoning Ability to outline one benefit and cost of deposit insurance You will be evaluated on a scale between 1 and 7 for each category and stand to gain between 40 and -20 academia points by answering this question. Note on sensitive content Please insert a DISCLAIMER at the beginning of your answer if it includes sensitive topics, such as racism, ageism, classism, discrimination, sexism, illegal activities, ethically questionable behaviors, experiences of grief and loss, trauma, or violence. Certain topics can trigger flashbacks, ruminating and emotional reactions if general acknowledgement is not provided, or the tone is not sober and respectful, especially when judgment or hurtful ideas are expressed. If such topics are involved, the marker can elect not to review the answer and obtain a different one by emailing support@lionsheartstudios.com