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In: Economics

Discuss the idea of bank failures in economics Consider a bank failure. Why would an individual...

Discuss the idea of bank failures in economics

Consider a bank failure. Why would an individual be more concerned and troubled with the failure of his/her bank than say, the local grocery store or pharmacy?

In fact, the FDIC usually insures deposits up to $250,000, so, in some sense, an individual might be more concerned with the local grocery store (say recently A&P) going bankrupt.

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