Part 10/12:
For individuals and business owners, this situation creates a dilemma: how much cash to keep accessible? While keeping cash on deposit in banks offers safety, recent bank failures highlight the risks—only a portion of deposits are insured, and insolvency can result in losses if funds are held in uninsured accounts.
Some suggest diversifying deposit holdings across multiple banks, but this increases costs and complicates financial management. Others advocate for maintaining a larger cash cushion as a buffer against unforeseen shocks, balancing risk and liquidity.