The Directive of Prompt Corrective Action Means That

question 84

Multiple Choice

The directive of prompt corrective action means that

• A)the FDIC will intervene earlier and more vigorously when a bank gets into trouble.
• B)the banks must take actions quickly to resolve reserve disputes.
• C)bank failures cannot occur.
• D)there must be an immediate response to an increase in interest rates.

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Definitions:

Emphasis on Collections

A focus or prioritization on the process of obtaining payments from customers or clients for goods or services provided.

Return on Sales Ratio

A financial metric that measures the portion of a company's revenue that is converted into profit.

Net Income Before Taxes

The profit a company generates after all expenses have been deducted from revenues but before income taxes are subtracted.

Liquidity

The ability of an asset to be converted into cash quickly without losing value.