The bottom choices for the drop down are the following

A. Pay off and liquidate B. Too big to fall C. purchase and assume

5. Dealing with a failed Institution Suppose Westbound Bank, which serves the entire Midwest, is failing, according to the CAMELS rating system. Suppose further that the failure of WestBound Bank appears kely to cause the failure of many financial institutions both in the Midwest and beyond and might even set off a financiar panic Internationally Which of the following scenarios is most likely to take place? The FDIC will find a healthy bank to purchase the failed Westbound Bank and assume all of WestBound Bank's abilities. As a result, no depositor would lose any of his or her deposits The FDIC will pay off the insured depositors to the stated maximum, currently $250,000. Uninsured depositors would obtain pennies on the dollar of deposits they had. Subordinated debt holders would be paid only after all of the depositors were paid in full, it possible WestBound Bank would not be guidated. Instead the FDIC, the Fed, and the U.S. Treasury would combine their afforts to find a way to inject capital into the bank This approach to failing bank is called