The Primary Difference Between the "Payoff" and the "Purchase and Assumption

question 88

Multiple Choice

The primary difference between the "payoff" and the "purchase and assumption" methods of handling failed banks is

• A)that the FDIC guarantees all deposits when it uses the "payoff" method.
• B)that the FDIC guarantees all deposits when it uses the "purchase and assumption" method.
• C)that the FDIC is more likely to use the "payoff" method when the bank is large and it fears that depositor losses may spur business bankruptcies and other bank failures.
• D)that the FDIC is more likely to use the purchase and assumption method for small institutions because it will be easier to find a purchaser for them compared to large institutions.

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Definitions:

Dominant Gene Pair

is two alleles of a gene where both are dominant, leading to the dominant trait being expressed in the organism.

Recessive Gene Pair

Two copies of a gene on a chromosome that must both be present for a recessive trait to be expressed.

Extra Chromosome

An abnormal condition where an individual has more than the usual number of chromosomes, leading to genetic disorders.

Mental Retardation

This term, now considered outdated and offensive, was formerly used to describe developmental delays in intellectual functioning and adaptive behavior. The more accepted term is "intellectual disability."