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The purchase and assumption method used by the FDIC to address the insolvency of a bank is when the FDIC: A ) finds another bank
The purchase and assumption method used by the FDIC to
address the insolvency of a bank is when the FDIC:
A finds another bank that assumes all the assets and
liabilities of the failing bank.
B pays off the depositors up to the current $ limit so
it is possible that some depositors will suffer losses.
C pays the owners of the bank for the losses they would
otherwise face.
D takes all of the assets of the bank, sells them, pays off the
liabilities of the bank in full, and then replenishes their fund
with any remaining balance.
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