In financial markets a "living will" is:
A)a set of instructions of how a bank failure should be carried out.
B)a set of instructions of the order of repaying shareholders.
C)a list of steps that must be taken by all banks in the event of insolvency.
D)how bank bond and shareholders should divide a bank's remaining assets after insolvency.
E)instructions of the succession in the event of a bank president's death.

Question

Quizplus · Accepted Answer

A "living will" in financial markets refers to a set of instructions that detail how a bank should be wound down in the event of its failure, including the sale of assets and repayment of creditors in a timely manner. This is intended to prevent the need for taxpayer-funded bailouts and ensure a more orderly resolution process.

In Financial Markets a "Living Will" Is