How does federal deposit insurance encourage greater risk taking by banks?  Could the banking system function without government deposit insurance?  How?

Which of the following CANNOT be found on a bank’s balance sheet?   deposits excess reserves required reserves cash held by individuals loans

write 300 words about the term “moral hazard” describes increases in risky behavior resulting from efforts to make that behavior safer. How does the concept of moral hazard apply to deposit insurance and other bank regulations?

Can the banks make easy profits because the money multiplies? How? Is it fair and efficient? Is the basic structure of banking stable and fair? Could it be different?

A bank's liquid assets consist of?

Why banking system is said to be on fractional reserve.  Please explain.

How do you make people believe that the banking system is safe? In the old days it was often done with architecture. Bank buildings were massive buildings with large cement pillars in front. Would you agree or disagree with this statement?

Why can banks continue to hold reserves that are only a fraction of the demand deposits of their customers? Is your money safe in a bank? Why or why not?

Would the maximum amount of new bank loans that a commercial bank can make be different when receiving a discount loan from the central bank of $1 million versus receiving a deposit of $1 million? Explain why or why not.  Thanks.

What is the term for the central banking system of the United States?   A. Federal Reserve B. Bank of America C. IMF D. World Bank