The Primary Difference Between the "Payoff" and the "Purchase and Assumption

question 54

Multiple Choice

The primary difference between the "payoff" and the "purchase and assumption" methods of handling failed banks is that the FDIC

• A) guarantees all deposits, not just those under the $250,000 limit, when it uses the "payoff" method.
• B) guarantees all deposits, not just those under the $250,000 limit, when it uses the "purchase and assumption" method.
• C) is less likely to use the "payoff" method when the bank is large and it fears that depositor losses may spur business bankruptcies and other bank failures.
• D) does both A and B of the above.
• E) does both B and C of the above.

Understand the robustness of the t-test under non-normal population distributions.

Calculate the value of A for specific confidence levels using sample size.

Determine the margin of error for population mean estimates from samples.

Recognize how sample size affects the margin of error in confidence intervals.