19-88 Which of the Following Is Not a Least-Cost Resolution

question 55

Multiple Choice

19-88 Which of the following is not a Least-Cost Resolution (LCR) requirement under FDICIA?

• A)Consider and evaluate all possible resolution alternatives by computing and comparing their costs on a present value basis,using realistic discount rates.
• B)Place a bank or thrift into receivership as soon as its capital falls below some positive book value level.
• C)Document the evaluation and the assumption on which it is based.
• D)Retain documentation for at least five years.
• E)Select the least costly alternative based on the evaluation.

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Definitions:

Income Taxes

Taxes levied by governments on the income generated by individuals and businesses within their jurisdiction.

Gross Profit

The difference between revenue and the cost of goods sold, indicating how efficiently a company produces goods/services at a profit.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit a company generates from its core operations.

Income Tax Expense

The amount of money that an individual or corporation owes to the government based on their taxable income.