What Was the Objective of the FDIC Improvement Act (FDICIA)of

question 29

Multiple Choice

What was the objective of the FDIC Improvement Act (FDICIA) of 1991?

• A)Returning the banking industry to record profit levels.
• B)Restructure the savings association deposit insurance fund and transfer its management to FDIC.
• C)To deny deposit insurance coverage to funds obtained through deposit brokers.
• D)To restructure the bank deposit insurance fund and prevent its potential insolvency.

---

Definitions:

Unfavourable Variance

A financial metric indicating that actual costs were higher or revenues were lower than the planned or standard amounts.

Productive Capacity

The maximum output a system, entity, or project can produce under normal conditions over a particular period.

Fixed Overheads

Fixed overheads are recurring business expenses that do not fluctuate with production volume, such as rent, salaries, and utility costs, essential for operational management.

Level of Activity

Level of activity refers to the volume of work or production achieved in a specific period, often influencing costs and operational planning.