1)FDIC deposit insurance covers the depositors of a failed FDIC-insured depository institution dollar-for-dollar, principal plus any interest accrued or due to the depositor, through the date of default, up to at least $350,000.

Is this true or false?

2)According to the FCIC report WaMu was forced to write off $1.9 billion for the fourth quarter of 2007 and another $1.1 billion in the first quarter of 2008, mostly related to its portfolio of option ARMs. These write-offs reduced the banks capital levels.

Is this true or false?

3)As a bank's capital is eroded from losses on the asset side of the balance sheet the cost of funds raised by equity and debt will increase.

Is this true or false?

4)Bank Holding Companies typically pay dividends to their bank subsidiaries. This is an important source of liquidity for banks.

Is this true or false?