Considering the Methods Available to the FDIC for Dealing with a Failed

question 39

Multiple Choice

Considering the methods available to the FDIC for dealing with a failed bank, the depositors of the failed bank should:

• A) be indifferent between the two since it really does not matter to them which method is used.
• B) prefer the purchase and assumption method since the deposits over $250,000 will also be protected.
• C) prefer the payoff method because they will have access to their funds earlier.
• D) prefer the payoff method since a lot less paperwork is involved for the depositor.

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Definitions:

Sheep Brain

Often used in educational settings, it is a model for studying the anatomy of the mammalian brain due to its similarity to the human brain but larger size for easy handling.

Choroid Plexuses

Structures in the brain ventricles responsible for producing cerebrospinal fluid, aiding in protecting and nourishing the brain.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion and exchanging nutrients and wastes.

Produce

Fresh fruits and vegetables that are grown for eating.