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Unformatted text preview: dealing with a failed bank before 1991? the sequential service method the purchase and liquidate method the payoff method the purchase and assumption method 5. Determine whether the below statements are true or false. I. Banks with more capital have greater incentive to take risks. II. Restrictions on bank asset holdings are designed to reduce bank risk taking. I is false; II is true. I is true; II false I and II are both true. I and II are both false. 6. When the FDIC uses the payoff method to handle a failed bank, no depositors are paid in full. all depositors are paid in full. owners of deposits that exceed the insurance limit are not paid in full. none of the above. 7. Banking crises in Norway, Finland, and Sweden were caused by a collapse in real estate prices. a sharp increase in interest rates. a drastic devaluation of currency values. the downfall of the Soviet economy....
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- Spring '08
- Finance, failed bank, income advantages