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 +

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Fill in the blanks to complete the passage about the role of the FDIC.
Drag word(s) below to fill in the blank(s) in the passage.
A‒‒‒‒‒
Corporation makes sure
+
The Federal
get their money back if an insured bank fails.
This agency was implemented during the
in response to the high number of bank failures. The
. 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
Q
+
▬▬▬▬▬▬▬▬▬
depositors Great Depression
Deposit Insurance moral hazard
Great Recession
+
excess reserves
bank loans
risk-averse behavior Deposit Investment
bank runs
bank owners
+

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