Intro to Business › Section O · Money and financial institutions › Topic O.4
Deposit insurance and international banking
A business keeps its payroll money in a bank because it trusts the money will be there on Friday. Deposit insurance underpins that trust at home, while international banking lets firms pay, borrow and manage currency risk across borders.
In this topic
- Why deposit insurance exists
- How FDIC insurance works
- What is and is not covered
- Worked example: a company's coverage
- Supervision and bank failures
- Moral hazard
- Why businesses bank across borders
- Worked example: locking in a currency cost
- Risks of banking abroad
- Common mistakes to avoid
- Key takeaways
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