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If the Cost of an FDIC Insurance Payoff Is $20

Question 41

Multiple Choice

If the cost of an FDIC insurance payoff is $20 million and the cost of the financial assistance for a purchase and assumption is $15 million, the FDIC is likely to:


A) pay off depositors of the failed bank.
B) establish a Deposit Insurance National Bank.
C) ask Congress for assistance.
D) encourage a purchase and assumption of the failed bank by a healthy bank.

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