Which of the Following Actions Can the Federal Deposit Insurance

question 7

Multiple Choice

Which of the following actions can the Federal Deposit Insurance Company take in the event of a failure of one of its insured banks?

• A) The FDIC can seize the assets of the investors and settle the bank's debts.
• B) The FDIC can allow the bank to stay afloat by granting a loan of federal money.
• C) The FDIC can conduct an inquiry into the investors' assets and actions to determine if there was any malfeasance that caused the bank failure.
• D) The FDIC can allow another bank to take responsibility for the failed bank's liabilities through sale of the failed bank.
• E) The FDIC can settle the bank's debts through its insurance deposit fund and regulate the bank's transactions more strictly.

---

Definitions:

Product Innovation

The development and sale of a new or improved product (or service).

Entrepreneurs

Individuals who provide entrepreneurial ability to firms by setting strategy, advancing innovations, and bearing the financial risk if their firms do poorly.

Innovators

Innovators are individuals or organizations that introduce new ideas, methods, or products, often leading the way in technological and societal changes.

Entrepreneurs

Individuals who take the risk of starting and managing businesses with the aim of making profits or driving social change.