Creation of the FDIC encouraged reluctant depositors

Creation of the FDIC encouraged reluctant depositors to put their money into the banking system.
a) Aside from the benefit of reducing the probability of bank runs, what other positive impact has this policy had in the performance of the overall economy?
b) How could higher deposit insurance premiums for banks with riskier assets benefit the economy?

Creation of the FDIC encouraged reluctant depositors

Q1) Creation of the FDIC encouraged reluctant depositors to put their money into the banking system.
a) Aside from the benefit of reducing the probability of bank runs, what other positive impact has this policy had in the performance of the overall economy?
b) How could higher deposit insurance premiums for banks with riskier assets benefit the economy?

Q2) Go to the Federal Reserve website and find the latest FOMC meeting press release. Please make sure that it is a FOMC release (Federal Reserve has other releases on its website as well). Read the release carefully. What did the committee decide? How will this decision impact the economy? Relate your answer to what you have learned about dual mandate.

Q3) Go to treasury.gov and find the Daily Treasury Yield Curve Rates for the day of your 18th birthday (or closest to that date – if your birthday was on the weekend or a holiday). Paste the data to Excel Graph a yield curve for that day. Describe that yield curve’s shape and say what it is telling you about the state of the economy at the time. Upload your file.

Q4) Imagine you have a choice of buying two bonds. 1) A corporate bond, fully taxable which pays 8% coupon and 2) a tax-exempt municipal bond which pays 6.4% coupon. Your marginal tax rate is 20%. Which bond do you prefer and why?

All of these questions are short answers. 1 paragraph for each question.