The FDIC must take steps to close down banks whose equity capital is less than ________ of assets.

Question

Quizplus · Accepted Answer

The FDIC is required to take steps to close down banks whose equity capital is less than 2% of assets. This is commonly referred to as the "well-capitalized" requirement, and it is one of several regulatory standards that banks must meet in order to operate. Banks that fall below this level are typically considered to be at risk of financial failure, and the FDIC may step in to take action in order to protect depositors and maintain stability in the financial system. Choices A, B, and D are incorrect because they do not represent the current well-capitalized requirement.

The FDIC Must Take Steps to Close Down Banks Whose