Why the fdic is following a too-big-to-fail policy, International Economics

Assignment Help:

Q. Explain why the FDIC is following a "too-big-to-fail" policy of fully protecting all depositors at the largest banks.

Answer: It is a tricky question the FDIC does that even though officially it still applies only to the $100,000 limit. Almost certainly the idea is that the cost to one depositor is unbearable relative to the small cost we all need to pay as a collective. As well there are the issues of political pressure and avoiding blaming the government for mismanaging the safeguards.


Related Discussions:- Why the fdic is following a too-big-to-fail policy

Wto, economic theories to explain free traden..

economic theories to explain free traden..

Characteristics of human resources, Characteristics of human resources in t...

Characteristics of human resources in the International Medical Center are their diversity and versatility; we find jurisdiction in the field of advanced medicine, we find at the s

Complete equalization of factor prices, Q. International trade leads to co...

Q. International trade leads to complete equalization of factor prices. Discuss. Answer : This statement is usually "true...but". Under a limited and strict set of assumpti

Neoclassical and classical trade theory, Q. Neoclassical and Classical tra...

Q. Neoclassical and Classical trade theory makes the case that free trade can bring a country to an optimum and economically efficient use of its resources; and therefore is an op

Trade theory, discuss the possibility of trade if factor endowment are iden...

discuss the possibility of trade if factor endowment are identical and tasde is different

Compare and contrast economic regions, Compare and contrast China's newest ...

Compare and contrast China's newest economic regions: the Special Economic Zones (SEZs), Open Cities, and Open Coastal Areas. What is the purpose of each regional type? Show how e

Foreign trade, Role of foreign trade to the economic development?

Role of foreign trade to the economic development?

How to keep the exchange rate fixed, Q. If the central bank does not purcha...

Q. If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at E 0 ? An

Adam Smith theory of absolute advantage.., Critically evaluate the theory a...

Critically evaluate the theory and outline the necessary assumptions for the theory to hold in it''s purest form

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd