Question

Deposit insurance is: private insurance by depositors to guarantee against a bank run that would affect deposits. government insurance that promised to reimburse individuals for loss in the value of deposits. a regulation that limits how much an individual can deposit at a single bank to avoid bank runs. a Federal Reserve Bank regulation that covered deposits by individuals against losses.

Answer 1

Answer: Statement A

Explanation: There sometimes comes a situation when banks of the country are unable to pay their debt and dues, to protect bank investors from such situation, in full or in part, is called Deposit insurance. These measures are implemented by the authorities for financial stability and safety in the economy.

So from the above explanation we can say that statement " Deposit insurance is private insurance by depositors to guarantee against a bank run that would affect securities" is the correct option.