With respect to the soundness of the financial system, deposit insurance helps to prevent bank panics even in the midst of bank failures by insuring deposit accounts up to $100,000. This valuable service can also prevent a liquidity crisis and help limit the downside of economic cycles. ... Although a risk-based premium structure helps to alleviate the moral hazard problem, the risk-based premium may create new problems. ... The FDIC is also concerned with the rate at which premiums raise during economics downturns. ... Lastly, many economics and the FDIC believe that deposit coverage is l...

• Word Count: 1737
• Approx Pages: 7
• Grade Level: Undergraduate

The history of accounting is as old as civilization, key to important phases of history, and among the most important professions in economics and business. ... Accountants created writing, participated in the development of money and banking, invented double entry bookkeeping that fueled the Italian Renaissance, helped develop the confidence in capital markets necessary for western capitalism, and are the center of the information revolution that is transforming the global economy. The role of accountants in the ancient world is becoming more clear with new archaeological discoveries and in...

• Word Count: 1710
• Approx Pages: 7
• Has Bibliography
• Grade Level: Undergraduate