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:

Usable Information

Data or facts that have been processed or organized in a way that they can be understood and utilized by the user, often to make decisions or solve problems.

Decision-Making Process

The cognitive process leading to the selection of a course of action among several alternative scenarios.

Black Box

A system or object which can be viewed in terms of its inputs and outputs without any knowledge of its internal workings.

Cognitive Dissonance

The conflict (i.e., remorse) that buyers feel after making a major purchase.