In lectures, we discussed the market for used cars as an example of a market with asymmetric information. Briefly describe the asymmetric information in the banking market (the market for bank deposits).

[2.1. 2 points] Assume that there is no deposit insurance. Consider the problem from the point of view of a depositor (a person who using a bank to keep savings). What type of information is relevant to a depositor?

[2.2. 2 points] How is deposit insurance supposed to help solve the problem that you described in [2.1] above?

[Q3. 2 points] Within the framework of property rights, please (briefly) explain the concept of regulatory taking. What does this concept mean?