The degree of risk exposure,based on which the amount of insurance premiums paid by each FDIC-insured depository is determined,is an interplay of two factors-risk class to which the institution belongs to and:
A)capital adequacy
B)net non-performing assets
C)gross non-performing assets
D)percentage of total liabilities hedged
E)open swap exposures

Question

Quizplus · Accepted Answer

Capital adequacy is a key factor, along with the risk class of the institution, in determining the degree of risk exposure for FDIC-insured depositories. This, in turn, influences the amount of insurance premiums paid by each institution.

The Degree of Risk Exposure,based on Which the Amount of Insurance