What Is Deposit Insurance?

Which of the following statements is NOT true of deposit insurance?

  • A. Deposit insurance provides protection for bank owners in case a bank fails. B. Deposit insurance contributed to the Savings and Loan (S&L) crisis of the 1980s by leaving depositors willing to let S&L owners make risky loans using depositors' funds. C. The Federal Deposit Insurance Corporation insures deposits using income it receives from charging banks an insurance premium. D. Deposits at most banks are insured by the Federal Deposit Insurance Corporation.

  • Answer:

    a

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