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Q 9. What is the benefit of a regulatory guarantee or deposit insurance program for depositors of  commercial banks?  a. It provides preference to those who are first in line to withdraw funds over those last in line. b. It provides incentives to depositors to engage in runs. c. It increases concerns about solvency of a bank. d. It increases concerns about the asset quality of a bank. e. It decreases the likelihood of bank runs

Q 9. What is the benefit of a regulatory guarantee or deposit insurance program for depositors of  commercial banks?  a. It provides preference to those who are first in line to withdraw funds over those last in line. b. It provides incentives to depositors to engage in runs. c. It increases concerns about solvency of a bank. d. It increases concerns about the asset quality of a bank. e. It decreases the likelihood of bank runs

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q 9. What is the benefit of a regulatory guarantee or deposit insurance program for depositors of  commercial banks? 

a. It provides preference to those who are first in line to withdraw funds over those last in line.
b. It provides incentives to depositors to engage in runs.
c. It increases concerns about solvency of a bank.
d. It increases concerns about the asset quality of a bank.
e. It decreases the likelihood of bank runs.
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