Normally,the Federal Deposit Insurance Corporation would shut down a bank when the ________.

Question

Quizplus · Accepted Answer

The FDIC would shut down a bank when the liabilities of the bank exceed its assets, indicating insolvency and inability to pay back its creditors. In this scenario, the FDIC steps in to protect depositors and may attempt to sell the bank's assets to try and recover some of the funds. Options A, B, and D do not necessarily indicate insolvency, so they would not trigger a shutdown by the FDIC.

Normally,the Federal Deposit Insurance Corporation Would Shut Down a Bank