Although the FDIC Does Not Charter Depository Financial Institutions, It

question 64

Multiple Choice

Although the FDIC does not charter depository financial institutions, it is said to have considerable influence in an institution's application for chartering because

• A) the FDIC establishes the types of deposit accounts that financial institutions can offer.
• B) the FDIC reviews all bank charter applications.
• C) chartering criteria include eligibility for deposit insurance.
• D) the FDIC advises the Fed as to which banks it should charter.

---

Definitions:

Profit Or Loss Model

A financial model that calculates the difference between a company’s revenues and its expenses, helping understand its profitability over a certain period.

Unrealized Gains

Increases in the value of assets that have not yet been sold, and therefore, the gains have not been realized or reflected in the income statement.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Debt Investments

Debt investments refer to investments made in bonds or other debt instruments where the investor lends money to an issuer in exchange for periodic interest payments and the return of the principal at maturity.