Under the Purchase-And-Assumption Method of Handling a Bank Failure, the FDIC

question 28

Multiple Choice

Under the purchase-and-assumption method of handling a bank failure, the FDIC

• A)takes over the bank and controls its operations.
• B)closes the bank, sells off the assets, pays off insured depositors, and then pays off creditors of the bank if funds remain.
• C)keeps the bank open and lends funds to it so that it is able to continue its operations.
• D)finds a buyer for the bank, giving the buyer the good assets of the bank, and assumes the bad loans of the bank.

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