Which of the Following Is a Drawback of FDIC Insurance

question 197

Multiple Choice

Which of the following is a drawback of FDIC insurance?

• A)FDIC insurance leads to excess industry profits.
• B)FDIC insurance has failed to arrest the trend of bank failures.
• C)FDIC insurance leads to the problem of moral hazard.
• D)FDIC insurance undercuts private insurance companies.

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