Which of the following is not a historical problem with deposit insurance?

Which of the following is not a historical problem with deposit insurance?



a. Deposit insurance is a substitute for some functions of bank capital.

b. Some banks are considered Too-Big-To-Fail.

c. Historically, deposit insurance premium levels have been insufficient to cover potential payouts.

d. Historically, deposit insurance premiums were not assessed against all of a bank's insured liabilities.

e. All of the above are historical problems with deposit insurance.



Answer: E


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