If the FDIC Decides That a Bank Is Too Big

question 90

Multiple Choice

If the FDIC decides that a bank is too big to fail,it will use the ________ method,effectively ensuring that ________ depositors will suffer losses.

• A)payoff;large
• B)payoff;no
• C)purchase and assumption;large
• D)purchase and assumption;no

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Definitions:

Commercial Impracticability

The standards used by the UCC, replacing the common law doctrine of impossibility, to define when a party is relieved of his or her contract obligations because of the occurrence of unforeseeable, external events beyond his or her control.

Increased Cost

The rise in the financial expenditure required to perform an activity, purchase goods, or maintain operations.

Collapse of Market

A rapid and significant decline in the value or performance of a market, leading to a widespread loss of confidence and investment.

Specific Performance

A legal remedy whereby a court orders the party who breached a contract to perform the promised action rather than merely compensating the other party with money.