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Why do Banks Fail? Economics Explained Interview with Professor Colliard

Economics Explained

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The Tradeoff Between Insured and Uninsured Deposits

In the US, FDIC ensures deposits in principle up to $250,000. But companies can have much bigger amounts that then are uninsured. In most countries, you have this idea that you have a certain threshold above which deposits are no longer insured. So it's one of the main fundamental trade-offs in regulation between banking and exports.

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