Discounting is no longer needed because the presence of the FDIC eliminates the possibility of bank panics. Is this statement true, false, or uncertain?

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Discounting is no longer needed because the presence of the FDIC eliminates the possibility of bank panics. Is this statement true, false, or uncertain?



Answer: False, the FDIC would not be effective in elimating bank panics without Fed discounting to troubled banks in order to keep bank failures from spreading.

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