Which of the Following Tends to Reduce Bank Failures as the Result

question 169

Multiple Choice

Which of the following tends to reduce bank failures as the result of bank runs by depositors?

• A)the Federal Deposit Insurance Corporation
• B)the Federal Open Market Operations Committee
• C)the comptroller of the currency
• D)the Senate Banking Committee

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Definitions:

Market Value Weighted Index

An index in which each constituent is weighted according to its market value, so larger companies have a bigger impact on the index's performance.

Index Value

The total value of all the stocks or securities within a specific index, representing the performance of a particular market or market segment.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of inventory, accounts receivable, and meeting short-term liabilities.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, representing a secure, low-risk investment option.