Which of the Following Would Most Likely Reduce the Number

question 58

Multiple Choice

Which of the following would most likely reduce the number of bank failures?

• A)​an increase in the number of small banks
• B)​tighter restrictions on interstate banking
• C)​creating a system of deposit insurance
• D)​encouraging banks to make more risky loans

---

Definitions:

Expenses

Costs incurred in the process of earning revenue; typically classified as fixed, variable, or periodic expenditures.

Breakeven Point

The point at which total cost and total revenue are equal, resulting in no net loss or gain for a business or project.

Variable Costs

Costs that change in proportion to the level of production or activity within a business, such as materials and labor costs.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.