Question $1$

In $2008,$ as financial crisis began to unfold the U$.$S$.$ the FDIC raised the limit on insured losses to bank depositors from $$100,000$ per account to $$250,000$ per account. How would this help stabilize the financial system?

Question $2.$

If interest rates decline, which would you rather be holding, long$-$term bonds or short$-$term bonds? Why? Which type of bond has the greater interest$-$rate risk?