The FDIC's Use of Purchase and Assumption Resolution of Failed

question 71

Multiple Choice

The FDIC's use of purchase and assumption resolution of failed banks has resulted in de facto 100 percent deposit insurance because

• A) all accounts up to $100,000 have been paid off by the FDIC.
• B) the assuming bank assumes all deposits of the failed banks.
• C) the assuming bank assumes all deposits up to $100,000.
• D) the large accounts above $100,000 are assumed by the FDIC.

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Definitions:

Pitch

The quality of a sound governed by the rate of vibrations producing it; the degree of highness or lowness of a tone.

Frequency

The rate at which a vibration occurs that constitutes a wave, either in a material (as in sound waves), or in an electromagnetic field (as in radio waves and light).

Sound Wave

A type of pressure wave generated by vibrating objects, traveling through mediums such as air, water, or solids, and perceived as sound by the human ear.

Müller-Lyer Illusion

A visual illusion in which two lines of the same length appear to be of different lengths because of the orientation of arrow-like tails at their ends.