Yellen: Not Considering Broad Deposit Insurance Increase

Yellen: Not Considering Broad Deposit Insurance Increase

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Business, Social Studies

University

Hard

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The transcript discusses the process and considerations involved in handling bank failures in the U.S. It highlights the role of congressional approval for banks over $250,000 and the systemic risk exception that allows the FDIC to protect all depositors. The decision to invoke this exception is made on a case-by-case basis, involving the FDIC board, the Fed board, and consultation with the president. The transcript clarifies that blanket insurance or guarantees are not currently being considered.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is required for a bank failure involving over $250,000 to receive congressional approval?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the role of the FDIC board in determining bank failures?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the term 'systemic risk' refer to in the context of bank failures?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the systemic risk exception allow the FDIC to do?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What considerations are made regarding blanket insurance or guarantees for depositors?

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