When Bank-A Fails and It Has Borrowed from Bank-B

question 43

Multiple Choice

When Bank-A fails and it has borrowed from Bank-B:

• A)the assets of Bank-B fall and Bank-B also risks insolvency.
• B)all Bank-A's deposits are usually covered by deposit insurance.
• C)Bank-B generally forgives the debt.
• D)Bank-B will buy Bank-A's outstanding debt.

---

Definitions:

Apathetic

Showing or feeling no interest, enthusiasm, or concern about something.

Ethical Mindfulness

An approach to ethics that emphasizes awareness and consideration of ethical implications and consequences in decision-making.

Conscious Decision

A choice made with full awareness and thoughtful consideration, as opposed to actions taken impulsively or without deliberation.

Amoral Manager

An individual who makes decisions without considering the ethical implications, focusing solely on business outcomes.