Deposit Insurance Is Only One Type of Government Safety Net

question 80

Multiple Choice

Deposit insurance is only one type of government safety net. All of the following are types of government support for troubled financial institutions EXCEPT

• A)forgiving tax debt.
• B)lending from the central bank.
• C)lending directly from the government's treasury department.
• D)nationalizing and guaranteeing that all creditors will be repaid their loans in full.

---

Definitions:

Public Disclosure Test

A legal standard evaluating if information has been disclosed to the public, impacting its confidentiality and protection.

Bad Publicity

refers to negative attention or press received by an individual, company, or product, which can adversely affect reputation, sales, and customer trust.

Efficiency

The ability to achieve a goal or perform a task with the minimum amount of time, effort, or resources.

Wealth

An abundance of valuable financial assets, resources, or property owned by an individual, corporation, or country.