Banking Awareness - Banking Acts, Reforms & Risk Management
Which statement best explains why deposit insurance is important for the banking system?
Which statement best explains why deposit insurance is important for the banking system?
medium Q7 of 15
Step-by-Step Solution
Step 1: Identify system-level impact
Deposit insurance reassures depositors.Step 2: Connect with confidence
People continue to trust banks even during stress.Final Answer:
It enhances public confidence in banks → Option CQuick Check:
Confidence keeps banking system stable ✅
Quick Trick: Insurance = trust in banking system.
Common Mistakes:
MISTAKES- Overestimating deposit insurance role in fraud prevention.
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