The primary difference between the "payoff" and the "purchase and assumption" methods of handling failed banks is
A) that the FDIC guarantees all deposits when it uses the "payoff" method.
B) that the FDIC guarantees all deposits when it uses the "purchase and assumption" method.
C) that the FDIC is more likely to use the "payoff" method when the bank is large and it fears that depositor losses may spur business bankruptcies and other bank failures.
D) that the FDIC is more likely to use the purchase and assumption method for small institutions because it will be easier to find a purchaser for them compared to large institutions.
B
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Seth's grandmother gave him a $50 savings bond for his birthday. The bond pays $50 at maturity, which is in five years. If the interest rate is 5%, the bond has a present value of $43.19
Indicate whether the statement is true or false
A singular important link between politics and economics in LDCs is that
a. democracies are more productive than nondemocracies b. democracies must constantly make difficult budgetary choices c. political instability is incompatible with long-term private investment d. conservatives prefer larger military budgets e. liberals prefer higher education expenditures