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Question
Many states had their own insurance fund to protect depositors. The critical problem with these state funds is:A. they are monopolies in their own state and extract extremely high prices for the insurance they provide.
B. they are highly inefficient they cannot achieve the economies of scale a federal fund can achieve.
C. they do not have regulators as knowledgeable as the regulators at FDIC.
D. no state fund is large enough to withstand a run on all of the banks it insures.
Answer
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