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sperry263 sperry263
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If Safeco Bank is shut down by the government and taken over by another bank, what happens to deposits and to the stockholders' equity?

▸ The new bank protects all deposits, but stockholders' equity is usually wiped out, unless the bank can lobby for a taxpayer-supplied bailout.

▸ Both the deposits and stockholders' equity are usually wiped out, and the new bank starts fresh.

▸ The FDIC insures deposits up to $250,000, but stockholders' equity is wiped out.

▸ The new bank protects deposits, and the FDIC insures the stockholders' equity.
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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skdiveelisskdiveelis
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sperry263 Author
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A year ago
Brilliant
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Helped a lot
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This helped my grade so much Perfect
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