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All of the Following Are True About Deposit Insurance Except

Question 35

Multiple Choice

All of the following are true about deposit insurance except:


A) Depositors do not need to involve themselves with the risk taking by bank managers
B) The deposits of a bank customer are insured up to some stated maximum value
C) There is a creation of potential moral hazard by bank managers
D) It has not been successful in eliminating bank runs and financial crises

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