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If Safeco Bank Is Shut Down by the Government and Taken

Question 168

Multiple Choice

If Safeco Bank is shut down by the government and taken over by another bank,what happens to deposits and to the stockholders' equity?


A) The FDIC insures deposits up to $250,000, but stockholders' equity is wiped out.
B) The new bank protects all deposits, but stockholders' equity is wiped out.
C) The new bank protects deposits, and the FDIC insures the stockholders' equity.
D) Both the deposits and stockholders' equity are usually wiped out, and the new bank starts fresh.

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