Deposit insurance is said to be great for the banking, Financial Management

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Deposit insurance is said to be great for the banking

a. Prior to 1934, there was no federal deposit insurance (i.e., no FDIC). Explain how the lack of deposit insurance would have made liquidity management more important and more difficult than it is now.

b. Deposit insurance is said to be great for the banking system and the economy. Why?

c. Deposit insurance has one big drawback. What is it? Explain.

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Financial Management: Deposit insurance is said to be great for the banking

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