What Was the Primary Reason That Congress Initiated Deposit Insurance

question 94

Multiple Choice

What was the primary reason that Congress initiated deposit insurance in the 1930s?

• A) protect the deposits of individual savers
• B) provide more of an incentive for depositors to monitor bank activities
• C) reduce systemic risk to the financial system
• D) reduce information problems in the banking system

Recognize the rights of disabled tenants for modifications in rented property.

Understand the concept of security deposits and their legal handling by landlords.

Understand the principles of the implied warranty of habitability and quiet enjoyment.

Identify legal exceptions and limitations of exculpatory clauses in lease agreements.

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Definitions:

Pledge of Inventory

The use of a company's inventory as collateral to secure a loan or meet other financial obligations.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to raise immediate capital.

Turning Receivables

Involves managing and collecting funds owed to a business by its customers within a given period.

Credit Profile

A summary or analysis of an individual's or entity's credit history and current financial status used by lenders to gauge creditworthiness.