Which of the following actions can the Federal Deposit Insurance Company take in the
event of a failure of one of its insured banks?
A) The FDIC can seize the assets of the bank and its investors and settle the bank’s
debts.
B) The FDIC can allow the bank to stay afloat by granting a loan of federal money.
C) The FDIC can conduct an inquiry into the investors’ assets and actions to determine
if there was any malfeasance that caused the bank failure.
D) The FDIC can allow another bank to take responsibility for the failed bank’s
liabilities through sale of the failed bank.
E) The FDIC can settle the bank’s debts through its insurance deposit fund and regulate
the bank’s transactions more strictly.
Why did the European Union develop the euro as its common currency?
A) To better compete with the U.S. dollar
B) To improve the integration of the economic system between member countries
C) To be able to outsource work to countries where wages are lower
D) To integrate a quality standard of production between member countries
E) To speed the issue of payment between member and nonmember countries