Drag word(s) below to fill in the blank(s) in the passage. The Federal This agency was implemented during the get their money back if an insured bank fails. in response to the high number of bank failures. However peace of mind the FDIC provided depositors resulted in a decreased frequency of since banks and their customers are no longer fully exposed to risk, there is increased potential for Corporation makes sure depositors Great Depression Great Recession excess reserves Deposit Insurance moral hazard risk-averse behavior bank loans * bank runs + + + bank owners Deposit Investment +

Drag word(s) below to fill in the blank(s) in the passage. The Federal This agency was implemented during the get their money back if an insured bank fails. in response to the high number of bank failures. However peace of mind the FDIC provided depositors resulted in a decreased frequency of since banks and their customers are no longer fully exposed to risk, there is increased potential for Corporation makes sure depositors Great Depression Great Recession excess reserves Deposit Insurance moral hazard risk-averse behavior bank loans * bank runs + + + bank owners Deposit Investment +

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter14: Modern Macroeconomics And Monetary Policy

Section: Chapter Questions

Problem 15CQ

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