22. Which of the following statements concerning federal deposit insurance is NO

Question

22. Which of the following statements concerning federal deposit insurance is NOT true?

A) The FDIC, in effect, insures all deposits in large banks.

B) Regulators have been reluctant to impose a coinsurance requirement on deposit insurance (thereby forcing

     depositors to shoulder a portion of the burden of coverage).

C) Regulators have been reluctant to reduce the dollar value of deposits that can insured.

D) Regulators seem likely to do away with the too-big-to-fail doctrine.

23. The popularity of money market mutual funds during the 1970s is best explained by

A) the rapid economic growth of that decade.                             B) the rapid increase in federal debt outstanding.

C) the stagflationary periods of that decade.                               D) the rise in market interest rates above Reg Q ceilings.

Explanation / Answer

22. Option D, too big to fail doctrine is used when business becomes big and government would provide assistance during bad times which is not always true.

23. Option D, the rise in market interest rates above Regulation Q ceilings used to best explain the popularity of money market.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.