Which of the following statements about the FDIC is correct?
I. The deposit insurance premiums charged by the FDIC to a member bank fully reflect the riskiness of that bank's assets
II. The manner in which the FDIC is set up helps protect depository institutions from the rigors of true market competition
A) I only
B) II only
C) Both I and II
D) Neither I nor II
Answer: B) II Only
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If a bond dealer sells a government bond to the Fed for $100,000, and the reserve ratio is 10 percent, then the bank that receives a $100,000 deposit from the dealer can expand its loans by ________,
and the money supply can increase by as much as ________. A) $80,000; $800,000 B) $10,000; $100,000 C) $90,000; $1,000,000 D) $90,000; $900,000
Marginal physical product of labor measures the
a. quantity of output produced by hiring workers b. change in output generated by hiring an additional worker c. change in revenue generated by hiring an additional worker d. change in cost generated by hiring one additional worker e. change in labor productivity generated by a change in capital employed