If There Are Major Failures of Several Large Banks or Many

question 23

Multiple Choice

If there are major failures of several large banks or many small banks, and the Federal Deposit Insurance Corporation (FDIC) insurance fund is insufficient to cover all of the depositors' losses, which of the following bodies is responsible for paying the depositors money owed by the FDIC?

• A) the Federal Reserve System
• B) the boards of the failed banks
• C) the National Credit Union Administration
• D) the U.S. government

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Definitions:

Safety Alarm

A device or system designed to alert individuals or authorities in instances of potential danger, such as break-ins, fires, or gas leaks.

Self-Assessment

An evaluation process by which an individual reflects on and judges their own performance, abilities, or qualities.

Monitor

To observe, track, or check for a specific purpose over a period of time, often to detect changes or progress.

Reactions, Behaviors

The actions or conduct displayed in response to specific stimuli or situations, often driven by emotions, thoughts, or environmental factors.