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The establishment of the FDIC created a time consistency issue. True or false?

The establishment of the FDIC created a time consistency issue.

True or false?

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Answer #1

The establishment of the FDIC created a time consistency issue...TRUE

The FDIC, also known as Federal Deposit Insurance Corporation is a United States government corporation that gives deposit insurance to depositors in US banks. Economist argue that when the chips are down, the regulators of the bank will have the stomach for imposing losses on uninsured creditors or depositors of a large bank even when they have talked tough about doing so over the years, and gave a fancy term "time inconsistency" problem.

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