4. Deposit insurance is only one type of government safety net. All of the following are types of government support for troubled financial institutions EXCEPT A) forgiving tax debt. B) lending from the central bank. C) lending directly from the government's treasury department. D) nationalizing and guaranteeing that all creditors will be repaid their loans in full.

Why are deposit insurance and other types of government safety nets important to the health of the economy?

n the United States, what is the financial institutions that insures regular deposit accounts to reassure individuals and businesses regarding the safety of their finances with financial institutions.By the way, the amount for an individual the amount insured as the sum held in checking, saving, and money market deposit accounts at the same bank up to $250,000.Group of answer choicesIRSFederal ReserveFDICDepartment of the TreasurySEC

A system of deposit insuranceA) attracts risk-taking entrepreneurs into the banking industry.B) encourages bank managers to decrease risk.C) increases the incentives of depositors to monitor the riskiness of their bank's assetportfolio.D) increases the likelihood of bank runs.

Which of the following about bank lending to government is incorrect?  Question 2Select one:Government securities enable a bank to manage the maturity structure of its balance sheet.Banks invest in government securities because they are a source of liquidityBanks invest in T-notes because they provide short-term income streams.Securities issued by governments are usually regarded as low risk.

All of the following are true about insurance companies EXCEPT # randomize A. They invest their reserves. B. They may guarantee to reimburse lenders should lenders' loans go into default. C. They participate in equipment leasing. D. They may only invest their reserves in interest-paying bank accounts under Federal law.