Fluctuations In Debt

Fluctuations in the dollar exchange rate affect the value of debt held by foreigners by making the debt worth more or less to foreign investors. If the dollar becomes stronger, it is worth more in foreign countries. This means that the debt held by the foreigners would be worth more as well. If the dollar becomes weaker, it is worth less in foreign countries. The debt held by foreigners would then be worth less.

The FDIC raised the limit on insured losses to bank depositors from $100K to $250K per account to help stabilize the financial system. This is because a financial panic would cause many people to take their money out of financial institutions in fear that they would lose everything. Americans would feel more secure in leaving their