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Deposit insurance ensures that depositors do not lose their money even if the bank:
AFloats
BFails
CFills
DFiles
Answer & Solution
Correct answer: B. Fails
1. The guarantee is the whole point of the scheme.
2. It removes the reason to rush to withdraw.
3. It holds even when the bank fails.
_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
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