In May 1991,the FDIC announced that it would sell the government's final 26% stake in Continental Illinois,ending government ownership of the bank that it had rescued in 1984. The FDIC took control of the bank,rather than liquidate it,because it believed that Continental Illinois
A) was a good investment opportunity for the government.
B) could be the Chicago branch of a new governmentally-owned interstate banking system.
C) was too big to fail.
D) would become the center of the new midwest region central bank system.
Correct Answer:
Verified
Q2: During the boom years of the 1920s,bank
Q3: Moral hazard is an important concern of
Q4: The existence of deposit insurance can increase
Q5: Although the FDIC was created to prevent
Q6: Because of asymmetric information,the failure of one
Q7: Deposit insurance has not worked well in
Q8: Acquiring information on a bank's activities in
Q9: To prevent bank runs and the consequent
Q10: A system of deposit insurance
A)attracts risk-taking entrepreneurs
Q11: Depositors lack of information about the quality
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