Which of the Following Is True of the FDIC

question 72

Multiple Choice

Which of the following is true of the FDIC?

• A)It controls the operations of all commercial banks in the U.S.
• B)It exists only in the countries of North America and Europe.
• C)It covers depositors against losses up to $500, 000 in a bank account.
• D)It is a federal agency that insures bank deposits in commercial banks.
• E)It is a financial institution that uses cost-plus pricing.

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Definitions:

S&P 500 Index

A market-capitalization-weighted index of 500 of the largest publicly traded companies in the U.S.

Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specific quantity of an underlying asset at a set price within a specified time.

American Call-Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other instruments at a specified price within a specific time period.

Dividend-Payout Policies

Strategies adopted by companies to decide the size and pattern of cash dividends to shareholders.