With reference to the recent bank failures in the US, which of the following is NOT true?

Question

1. The FDIC took over the Silicon Valley Bank in California.
2. The Federal Reserve and the Treasury Department announced that depositors in both the banks would be repaid in full.
3. Shareholders of the two banks were protected by the regulators.

(a) 1 only

(b) 2 only

(c) 3 only

(d) None of the above

Answer 1

Answer: (c) 3 only

 

Explanation: The regulators announced that depositors in both the banks would be repaid in full, but shareholders of the two banks would not be protected, as stated in the passage. Therefore, option (c) is incorrect.