Because shutting it down , bank regulators are tempted to place an insolvent bank in forbearance.
A)is costly to depositors who may lose a portion of their deposits
B)is embarrassing to bank examiners
C)means lost jobs
D)All of the Answer s are correct.

Question

Quizplus · Accepted Answer

All of the answers are correct. Forbearance means delaying or postponing the recognition of a problem or issue, so placing an insolvent bank in forbearance may cause a loss of deposits to the depositors, be embarrassing to bank examiners who failed to identify the problem earlier, and result in lost jobs for the employees of the bank.

Because Shutting It Down , Bank Regulators Are Tempted to Place