If There Are Major Failures of Several Large Banks or Many

question 44

True/False

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, then the U.S. government will pay the depositors the money owed by the FDIC.

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Definitions:

COLA

Cost of Living Adjustment, an increase in income to keep up with living expenses, often applied to salaries and benefits to offset inflation.

Misery Index

An economic indicator created by summing the unemployment rate and the inflation rate, intended to measure the average citizen's financial hardship.

Unanticipated Inflation

Inflation that occurs when people do not expect it, leading to negative impacts on savings and purchasing power.

Disinflation

A slowdown in the rate of increase of the general price level of goods and services over time.