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Question
What does a high proportion of brokered deposits indicate?
A. Total risk-based capital ratio of the DI is less than 10 percent.
B. Above average risk, and thus an increased potential for failure.
C. Less informed savers are protected against a reduction in wealth.
D. Reduced insolvency risk as brokered deposits are covered under deposit insurance.
E. Lower levels of credit risk.
Answer
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