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What portion of cost borne by depository institutions

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Question: Consider the issue of whether or not the government should provide a system of deposit insurance. Should it be wholly or partly subsidized by the taxpayers? What portion of the cost should be borne by depository institutions? by depositors? Should riskier depository institutions pay higher deposit insurance premiums? Explain how you would deter-mine exactly how big an insurance premium each depository institution should pay each year.

Reference no: EM131717125

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