If the Government Guarantees Not Only the Deposits but Also

question 112

Multiple Choice

If the government guarantees not only the deposits but also the other liabilities of a failing bank, the government usually:

• A)temporarily takes over the bank but then reprivatizes it as soon as possible.
• B)merges it with the Treasury.
• C)merges it with the Federal Reserve.
• D)closes the bank permanently.

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Definitions:

Adult Illiteracy

The condition in which an adult lacks the basic reading and writing skills needed for managing daily living and employment tasks.

Infrastructure

Infrastructure represents the fundamental facilities and systems serving a country, city, or area, including transportation, communication, sewage, water, and electric systems.

Import Quotas

Government-imposed limits on the quantity or value of goods that can be imported into a country, used to protect domestic industries from foreign competition.

Developing Nations

Countries with lower levels of industrialization, lower standards of living, and, generally, lower Human Development Index scores than developed countries.