What Is the Benefit of a Regulatory Guarantee or Deposit

question 64

Multiple Choice

What is the benefit of a regulatory guarantee or deposit insurance program for liability holders of FIs?

• A)It decreases the likelihood contagious runs.
• B)It increases concerns about the asset quality of FI.
• C)It increases concerns about solvency of an FI.
• D)It provides preference to those who are first in line to withdraw funds over those last in line.

---

Definitions:

Other Income

Income derived from sources other than a company's primary business operations, such as interest or rental income.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.

Record Payments

The process of documenting all money transfers made to settle debts or for purchases in the accounting records of a company.

Perpetual Inventory Method

An accounting method for maintaining continuous records of inventory balances, with updates made for each purchase and sale transaction.