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Large manufacturing firms that employ thousands of

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Large manufacturing firms that employ thousands of people b. Depositors; this is role the government plays when they insure depositors' balances in banks that fail c. Developing countries that are trying to build their financial systems d. Banks that experience sudden deposit outflows 8. Considering the methods available to the FDIC for dealing with a failed bank, the depositors of the failed bank should: a. Be indifferent between the two since it really does not matter to them which method is used b. Prefer the purchase and assumption method since the deposits over $250,000 will also be protected c. Prefer the payoff method because they will have access to their funds earlier d. Prefer the payoff method since a lot less paperwork is involved for the depositor 9. Which of the following statements is most correct? a. The higher the deposit insurance limit the lower the risk of moral hazard b. The higher the deposit insurance limit the greater the risk of moral hazard c. Deposit insurance limits do not impact moral hazard, they impact adverse selection d. Increasing the deposit insurance limits above $100,000 would increase coverage for over 50 percent of all depositors 10. If the government did not offer the too-big-to-fail safety net: a. Large banks would be more disciplined by the potential loss of large corporate accounts b. The moral hazard problem of insuring large banks would increase c. The moral hazard problem of insuring large banks would not be affected
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d. The FDIC deposit insurance limits would have to be raised
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Large manufacturing firms that employ thousands of people b...

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