Macroeconomics (Book Only)
12th Edition
ISBN: 9781285738314
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 18, Problem 3QP
To determine
Describe FDIC insurance that can cause banks to take riskier loans than they would if FDIC did not exist.
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Students have asked these similar questions
What are the primary differences between different types of banks (savings, commercial, investment, contractual, intermediary, national, credit unions, etc.)? How are insurance companies acting in the capacity of banks?
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c14. You have savings accounts at two
separately FDIC insured banks, ABC Bank
and XYZ bank. At ABC your account has
a balance of $200,000. At XYZ bank the
account balance is $60,000.
a. If both banks fail how much will you
receive?
b. You find out that ABC and XYZ banks
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about the possibility of the new bank
failing what would you do?
Chapter 18 Solutions
Macroeconomics (Book Only)
Ch. 18.2 - Prob. 1STCh. 18.2 - Prob. 2STCh. 18.2 - Prob. 3STCh. 18.4 - Prob. 1STCh. 18.4 - Prob. 2STCh. 18.7 - Prob. 1STCh. 18.7 - Prob. 2STCh. 18.7 - Prob. 3STCh. 18 - Prob. 1VQPCh. 18 - Prob. 2VQP
Ch. 18 - Prob. 3VQPCh. 18 - Prob. 4VQPCh. 18 - Prob. 5VQPCh. 18 - Prob. 1QPCh. 18 - Prob. 2QPCh. 18 - Prob. 3QPCh. 18 - Prob. 4QPCh. 18 - Prob. 5QPCh. 18 - Prob. 6QPCh. 18 - Prob. 7QPCh. 18 - Prob. 8QPCh. 18 - Prob. 9QPCh. 18 - Prob. 10QPCh. 18 - Prob. 11QPCh. 18 - Prob. 12QPCh. 18 - Prob. 13QPCh. 18 - Prob. 14QPCh. 18 - Prob. 15QPCh. 18 - Prob. 16QPCh. 18 - Prob. 17QPCh. 18 - Prob. 1WNGCh. 18 - Prob. 2WNGCh. 18 - Prob. 3WNGCh. 18 - Prob. 4WNGCh. 18 - Prob. 5WNG
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- Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy?arrow_forwardIf you were going to get a loan to purchase a new car,which financial intermediary would you use: a creditunion, a pension fund, or an investment bank?arrow_forwardWhy is there a need to regulate Investment banks?arrow_forward
- three ways in which banks use to make profitarrow_forwardQuestion 1. Bob has $50,000 in a checking account and $150,000 in his savings account at Big Bank. What is the total amount of FDIC insurance he has on these two accounts? Question 2. Sue has $50,000 in her checking account at Small Bank and $150,000 in a savings account at Big Bank. What is the total amount of FDIC insurance she has on these two accounts?arrow_forwardWhat caused Silicon Valley Bank to reach the national and international headlines and breaking news?arrow_forward
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