Deposit insurance is:
A. a Federal Reserve Bank regulation that covered deposits by individuals against losses.
B. private insurance by depositors to guarantee against a bank run that would affect deposits.
C. a regulation that limits how much an individual can deposit at a single bank to avoid bank runs.
D. government insurance that promised to reimburse individuals for loss in the value of deposits.
Answer: D
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To prevent bank runs and the consequent bank failures, the United States established the ________ in 1934 to provide deposit insurance
A) FDIC B) SEC C) Federal Reserve D) ATM
Federal tax policy:
A. treats employer health insurance premiums as taxable income. B. subsidizes health insurance and thereby increases the demand for health care. C. subsidizes health insurance and thereby decreases the demand for health care. D. corrects the overallocation of resources to the health care industry that would otherwise exist.