The Major Provisions of the Competitive Equality in Banking Act

question 2

Multiple Choice

The major provisions of the Competitive Equality in Banking Act of 1987 included

• A) expanding the responsibilities of the FDIC, which is now the sole administrator of the federal deposit insurance system.
• B) establishing the Resolution Trust Corporation to manage and resolve insolvent thrifts placed in conservatorship or receivership.
• C) directing the Federal Home Loan Bank Board to continue to pursue regulatory forbearance.
• D) all of the above.
• E) only A and B of the above.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance, providing predictability but fixed financial commitments.

Break-Even Point

The financial point at which total revenues exactly equal total costs, resulting in neither profit nor loss.

Profitability

An indicator of how effectively a company generates profit from its revenues, often measured by profit margins or return on investment.

Cost

The value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore.