EBK ECONOMICS OF MONEY, BANKING AND FIN
EBK ECONOMICS OF MONEY, BANKING AND FIN
5th Edition
ISBN: 8220106799727
Author: Mishkin
Publisher: PEARSON
Question
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Chapter 10, Problem 4Q
To determine

Impact on the economy if deposit insurance premiums are higher with riskier assets.

Concept Introduction:

Deposit insurance reduces the failures which subjected to the banks. However, it might force the banks to sell-off its entire assets in certain scenarios.

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