Which of the following actions can the Federal Deposit Insurance Company take in the event of a failure of one of its insured banks?
A) The FDIC can seize the assets of the bank and its investors and settle the bank's debts.
B) The FDIC can allow the bank to stay afloat by granting a loan of federal money.
C) The FDIC can conduct an inquiry into the investors' assets and actions to determine if there was any malfeasance that caused the bank failure.
D) The FDIC can allow another bank to take responsibility for the failed bank's liabilities through sale of the failed bank.
E) The FDIC can settle the bank's debts through its insurance deposit fund and regulate the bank's transactions more strictly.

Question

Quizplus · Accepted Answer

D)The FDIC can do one of two actions: sell the failed bank or pay off its debts by seizure of its assets (and not those of the investors).

Which of the Following Actions Can the Federal Deposit Insurance