What Is the Benefit of a Regulatory Guarantee or Deposit

question 64

Multiple Choice

What is the benefit of a regulatory guarantee or deposit insurance program for liability holders of FIs?

• A)It decreases the likelihood contagious runs.
• B)It increases concerns about the asset quality of FI.
• C)It increases concerns about solvency of an FI.
• D)It provides preference to those who are first in line to withdraw funds over those last in line.

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Definitions:

Sole Proprietorship

A business structure where a single individual owns and runs the business, bearing all the profits and responsibilities for liabilities and debts.