Although the FDIC Was Created to Prevent Bank Failures,its Existence

question 14

Multiple Choice

Although the FDIC was created to prevent bank failures,its existence encourages banks to

• A)take too much risk.
• B)hold too much capital.
• C)open too many branches.
• D)buy too much stock.

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Definitions:

Top Executives

Individuals who hold the highest-level management positions within a company, responsible for developing strategies, making major decisions, and overseeing the entire organization's operations.

Gain-Sharing Plans

A compensation strategy where employees receive benefits directly as a result of cost-saving measures they have contributed to.

Individual Rewards

Compensation or recognition given to employees based on their individual performance or achievements.

Goal-Sharing Plans

Programs that encourage and reward employees for contributing to and achieving the company's objectives, often through financial incentives.