What Is the Benefit of a Regulatory Guarantee or Deposit

question 64

Multiple Choice

What is the benefit of a regulatory guarantee or deposit insurance program for liability holders of FIs?

• A)It decreases the likelihood contagious runs.
• B)It increases concerns about the asset quality of FI.
• C)It increases concerns about solvency of an FI.
• D)It provides preference to those who are first in line to withdraw funds over those last in line.

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Definitions:

Standards Of Behavior

Standards of behavior refer to established norms and rules governing the conduct of individuals within a society, organization, or community.

Virtual Communities

Groups of individuals who interact and share common interests or goals through the internet, without the need for physical presence.

Norms

Socially accepted rules or standards that dictate the expected behavior within a community or group.

Level Of Participation

The degree or extent to which consumers or members of a community engage with an activity, service, or product.