Probably the Most Significant Factor Explaining the Drastic Drop in the Number

question 35

Multiple Choice

Probably the most significant factor explaining the drastic drop in the number of bank failures since the Great Depression has been

• A)the creation of the FDIC.
• B)rapid economic growth since 1941.
• C)the employment of new procedures by the Federal Reserve.
• D)better bank management.

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Definitions:

Nondeductible Contributions

Contributions to certain retirement accounts that cannot be deducted from current income taxes, but may potentially grow tax-free until withdrawal.

Tax Basis

The value of an asset for tax purposes, used to calculate gain or loss on the sale or other disposition of the asset.

Taxable Portion

The part of an income or transaction that is subject to taxes, after exemptions and deductions have been applied.

IRA Distribution

Money that is taken out from an Individual Retirement Account, which may be subject to taxes and penalties depending on the timing and circumstances of the distribution.