Deposit Insurance Only Seems to Be Viable at the Federal

Multiple Choice

Deposit insurance only seems to be viable at the federal level. This is likely due to the fact that:

A) state funds are less informed about the solvency of national banks.
B) a run on the banks within a state will always spread countrywide.
C) the U.S. Treasury backs the FDIC and can therefore withstand virtually any crisis.
D) the cost of state insurance is prohibitively high.