Although the FDIC Was Created to Prevent Bank Failures,its Existence

question 14

Multiple Choice

Although the FDIC was created to prevent bank failures,its existence encourages banks to

• A)take too much risk.
• B)hold too much capital.
• C)open too many branches.
• D)buy too much stock.

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Definitions:

Activating Concept

The process of making certain ideas, memories, or associations more accessible or prominent in one's mind.

Mind

The set of cognitive faculties that enables consciousness, perception, thinking, judgment, and memory—a fundamental aspect of what makes us human.

Schemas

Mental structures consisting of a collection of ideas or concepts used for understanding and interpreting information, guiding cognitive processing and behavior.

Concepts

Fundamental ideas or principles that form the foundation of thinking in various domains or disciplines.