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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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
The largest component of the consumer price index is ________.
A. medical care B. transportation C. apparel D. housing
Health insurance plans which typically reimburse doctors mainly by paying a flat fee per patient are known as
A) fee-for-service plans. B) single-health-payer systems. C) preferred provider organizations. D) health maintenance organizations.
If the graph shown represents Celia's budget constraint, which of the following must be true?
A. Celia will spend twice as much on earrings as she does hairbands.
B. Celia could consume either four pairs of earrings or eight hairbands.
C. Celia gets twice as much utility from earrings as she does from hairbands.
D. All of these are true.