The FDIC... a. has been credited with reducing the number of bank failures since 1933. b. insures most bank deposits for up to $250,000. c. All of the answers provided are correct. d. eliminates the need for bank depositors to run to their bank when they hear bad news about the bank.

Q: What is the main purpose of AMLC (Anti-Money Laundering Council? * a. Monitor all transactions of…

A: Money laundering refers to the situation when a firm, bank or any other institution make an exchange…

Q: Banks may money out of other people's money. True False

A: The banks can generate money from people money and this can be done in many ways, one way is to use…

Q: The fed is responsible for keeping the banking industry stable. True or false

A: For the production and consumption of goods, economic agents have derived a barter system. In the…

Q: A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a…

A: Banks generate profits primarily through the intermediation process, where they accept deposits from…

Q: How much money does the average American have in the bank?

A: As per Federal Reserve Survey of Consumer Finance 2016, the average balance was $10545.

Q: Bank A has checkable deposits of $10 million and total reserves of $1 million. The required reserve…

A: Bank's required reserves= 9% of $10 million= $900,000 The reserves bank has= $1 million

Q: At which stage money laundering is easy to detect?

A: Money laundering refers to an illegal process of producing a huge amount of money that is generated…

Q: What is coinsurance

A: Co-insurance is the amount that you are required to pay for a medical claim, apart from any…

Q: The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial…

A: Excess reserves are the excess of money a commercial bank hold with the central bank of country over…

Q: Financial intermediaries a.reduce the cost of financial transactions. b.provide safety of resources…

A: Answer: Financial intermediaries work as a middleman between the two parties (such as savers and…

Q: 27a. what is FDIC and what does FDIC do?  27b. why banking system collapse during the recession…

A: FDIC stands for Federal Deposit Insurance Corporation and it is an autonomous agency of the United…

Q: bank has outstanding loans of $7,500, reserves of $2,500, and deposit liabilities of $10,000.    If…

A: Reserves requirement ratio is the percentage of deposits that a company is required to hold as…

Q: When a bank issues a loan to a customer:     A) bank assets fall by the amount of the…

A: Bank is financial institution that controlled and monitor by the central bank of the respective…

Q: Banks should have to hold all of their deposits.  True or False?  Explain.

A: Banks provide financial services to the people by accepting their deposits and keeping them safe…

Q: c14. You have savings accounts at two separately FDIC insured banks, ABC Bank and XYZ bank. At ABC…

A: Given the deposit amount in ABC bank = $200000 The deposit amount in XYZ bank = $60000

Q: Required reserves of banks are a fixed percentage of their   a. deposits.   b. All of these…

A: ANS Reserve Requirement or the cash reserve ratio is the liquid cash amount in the proportion of its…

Q: Explain each of the following types of deposit accounts: a.demand deposit b.certificate of deposit…

A: A bank is an institute which deals in credit and money creating of the economy. It provides the…

Q: The federal deposit insurance corporation(FDIC) does which 3 things? a. Directly manges every bank…

A: The Federal Deposit Insurance Corporation (FDIC) is a federal agency that insures bank deposits.The…

Q: Bank mobilizes the savings of people. True False.

A: Banking is the business of accepting deposits from individuals and businesses, and using those…

Q: The government regulates the banking industry by   a. limiting the quantity of some kinds of assets…

A: The regulation of the banking industry by the government is very important for the economic…

Q: Welfare banks are check-cashing stores. T or f

A: Welfare banks are used to cash the paychecks.

Q: Banks don't lend out all of the funds deposited because:     A) they need to make more…

A: Bank is financial institution that controlled and monitor by the central bank of the respective…

Q: Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both,…

A: The commodity that is accepted as a medium of exchange in the market is known as money. It is used…

Q: The central bank buys $10,000 worth of bonds in the open market from Elaine, who deposits the…

A: Central bank:  It means an apex financial institution of the country.  Liabilities are the deposit…

Q: A bank that wishes to reduce its credit risk could: A. Sell risky loans from its loan portfolio B.…

A: In the banking sector, when bank lend out money, it has to bear a default risk on various assets.