In the Ten Years After the FDIC Limit Was Increased

question 3

Multiple Choice

In the ten years after the FDIC limit was increased to $100,000:

• A) more than four times the number of banks and savings and loans failed than did during the first 46 years of FDIC's existence.
• B) less than one-fourth the number of banks and savings and loans failed than during the first 46 years of FDIC's existence.
• C) the cost to taxpayers of failed institutions in that period was negligible because FDIC was in place.
• D) increasing the deposit insurance limit to $250,000 provided complete coverage for all deposits except those of large corporations.

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Definitions:

Pygmalion Effect

The phenomenon whereby higher expectations lead to an increase in performance.

Performance

Performance refers to the execution of tasks and activities, and how effectively an individual, team, or organization achieves their objectives and goals.

Expectations

Are the beliefs about the future outcomes or performances, which can influence behavior and performance in an individual or group setting.

Impression Management

The process by which individuals attempt to control or manipulate the perceptions of others about themselves, often to appear more favorable or competent.