If an FI Embraces the Concept of Good Bank/bad Bank

question 38

Multiple Choice

If an FI embraces the concept of good bank/bad bank,

• A)bad bank assets are passed on to the institutions correspondent bank that is required to accept the assets.
• B)good bank assets are organized into a closed end mutual fund which then sells shares to raise funds for the bad bank.
• C)the bad bank is a special purpose vehicle (SPV) that is organized to liquidate non-performing loans.
• D)the bad bank assets are funded by FDIC insured deposits.
• E)the bad bank is placed under the supervision of the Resolution Trust Corporation.