Many policymakers in developing countries have proposed implementing systems of deposit insurance like the one that exists in th
e United States. However, replicating the financial system from one nation may not be successful in other nations due to different economies, politics, histories, etc. Deposit insurance is designed to _______ (decrease / increase) fears of bank runs and therefore _______ (decrease / increase) confidence in banks and deposit.
the blank will be filled with Decrease; increase respectively.
Deposit insurance will decrease fear of bank run and therefore increase confidence in banks and deposit.
Replicating the financial system from one nation may not be successful for that country because every country's economy is different.
Politics also plays a very important role in the economy because if the nation is economic stable them confidence in the bank system also increases. So, replicating the financial system from another country is not the solution.
If the government intervenes and corrects the externality in the situation described above, the expectations are
the output of the paper mills to increase. The price of paper from the mills to decrease. Production of the hydroelectric power plants to decrease. production in the paper mills to decrease.
Two daily contributions to the population should include Food and sustenance. Sustenance is food or drink that allows you to continue to be alive. It serves as your source of strength to wake up everyday and do work.
