Insurance that protects individuals from the loss of their bank deposits:

A) makes bank officials especially careful about the loans and investments they make.
B) makes it virtually impossible for a bank to fail.
C) is so costly that few banks can afford it.
D) makes depositors less concerned about the safety of their money than the interest rate it is earning.
E) was introduced as a direct result of the financial problems of the 1970s and 1980s.

Question

stephany castro · Accepted Answer

Final Answer : D, Explanation :  Insurance that protects individuals from the loss of their bank deposits makes depositors less concerned about the safety of their money, focusing more on the interest rates. This is because they feel secure that their deposits are protected regardless of the bank's financial health.

Definitions

Learning Objectives

Learning Objectives

Related questions