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According to Goodman and you will Shaffer (1984), brokered places didn’t originally produce to increase productive deposit insurance policies restrictions. Instead, they created in the fresh sixties and you can 1970s to enable financial institutions to get date deposits, such as, Cds, of outside of their particular business as well as depositors to locate high cost. Mutual dumps try dumps traded between financial institutions so you can effortlessly improve put insurance coverage.

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