What Was the Objective of the FDIC Improvement Act (FDICIA)

question 96

Multiple Choice

What was the objective of the FDIC Improvement Act (FDICIA) of 1991?

• A)Returning the banking industry to record profit levels.
• B)Restructure the savings association deposit insurance fund and transfer its management to FDIC.
• C)To deny deposit insurance coverage to funds obtained through deposit brokers.
• D)To restructure the bank deposit insurance fund and prevent its potential insolvency.
• E)To enforce the capital standards on insured depository institutions.

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Definitions:

Fishbone Diagram

A visual tool used for identifying and organizing the causes of a problem, typically resembling the shape of a fishbone.

Causes

The underlying factors or reasons for an event or situation, often analyzed in problem-solving and decision-making processes.

The Law of Unintended Consequences

The principle that actions, especially those taken on a large scale, can have unanticipated and often undesirable effects.

Uncertainty

The state of having limited knowledge, making it impossible to precisely predict the future or outcomes.