Which of the Following Is True

question 56

Multiple Choice

Which of the following is true?

• A)The FDIC sets the reserve requirements for commercial banks.
• B)The Federal Reserve System guarantees the deposits in almost all banks up to a limit of $1,000,000 (extended to $2,500,000 through 2013) per account.
• C)Since the Federal Reserve System was established in 1913, bank failures due to panic withdrawals have been virtually eliminated.
• D)If a bank should fail, the FDIC guarantees that depositors can get their funds up to a limit of $100,000 (extended to $250,000 through 2103) per account.

---

Definitions:

Cost

The value of everything a seller must give up to produce a good.

Long Run Adjustment

The process through which input levels, production capacities, and market prices stabilize in response to sustained changes in demand or supply.

Profit-Maximizes

Refers to a strategy or actions by firms aiming to achieve the highest possible profit given their constraints and market conditions.

Active Listener

Someone who pays close attention to what is being said, demonstrating engagement and understanding through feedback, paraphrasing, and reflection.