Which of the Following Actions Can the Federal Deposit Insurance

question 102

Multiple Choice

Which of the following actions can the Federal Deposit Insurance Company take in the event of a failure of one of its insured banks?

• A) The FDIC can seize the assets of the bank and its investors and settle the bank's debts.
• B) The FDIC can allow the bank to stay afloat by granting a loan of federal money.
• C) The FDIC can conduct an inquiry into the investors' assets and actions to determine if there was any malfeasance that caused the bank failure.
• D) The FDIC can allow another bank to take responsibility for the failed bank's liabilities through sale of the failed bank.
• E) The FDIC can settle the bank's debts through its insurance deposit fund and regulate the bank's transactions more strictly.

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Definitions:

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Critical Thinking

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The act of regularly observing and checking the progress or quality of something over a period of time.

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