1. Suppose that you have $300,000 in deposits at a bank. After careful consideration, the FDIC decides that this bank is now insolvent. Which method would you like to see the FDIC uses? Explain. What if your deposit were $200,000? Explain. (10 points)

2. The Dodd-Frank bill, passed in July 2010, addresses five categories of regulation. What are these five categories of regulation? There are three approaches (suggested by the textbook) to solve the too-big-to-fail problem and one of them is leave it to Dodd-Frank bill to solve. Why can the Dodd-Frank bill eliminate the too-big-to-fail problem? Explain. (10 points)