One of the Serious Drawbacks of the Deposit Insurance System

Multiple Choice

One of the serious drawbacks of the deposit insurance system in the United States is that:

A) bank failures continue to occur regularly.
B) the system took away the Federal Reserve's ability to conduct open-market operations.
C) the system took away the Federal Reserve's ability to change reserve requirements.
D) if insured intermediaries make many bad loans, the taxpayers may be responsible for covering the losses.