When a distressed bank situation arises, which of the following is most closely associated with the FDIC's method of disposition wherein the bank is merged with a healthy bank?

Question

Quizplus · Accepted Answer

The FDIC often uses the purchase and assumption method when dealing with distressed banks, where a healthier bank agrees to purchase some or all of the assets and assume some or all of the liabilities of the failed bank, including deposits. This method helps ensure that depositors have continuous access to their funds without a direct payout from the FDIC insurance fund.

When a Distressed Bank Situation Arises, Which of the Following