The reduction in deposit funds cost to an individual bank brought about by government insurance is an example of the

C. private benefits of regulation to DIs.

Explanation:

Private benefits are those that the parties involved in a transaction experience. The Government insuring deposits in Deposit Institutions (DIs) is as a result of regulation of those same DIs.

A private benefit to DIs is that the cost of deposit funds has been reduced because the Government now insures the deposits directly so banks do not have to significantly account for such anymore.

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explanation:

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answerit is the safest endorsement for business;