Which statement is false?

Treasure: Which statement is false?
a.) Most savings and loan associations were locked into low-interest-rate mortgages in the 1950s and 1960s.

b.) To get a bank charter, you need to demonstrate that your community needs a bank or an additional bank.

c.) Nearly all banks today are regulated by both the Federal Reserve and the FDIC.

d.) The FDIC would rather pay off depositors than be forced to find another bank to take over an ailing institution.

e.) Money is created when someone takes out a bank loan.

Answers and Views:

Answer by MK
e

Answer by tbone_of_07
a.) Most savings and loan associations were locked into low-interest-rate mortgages in the 1950s and 1960s.
This is true.

b.) To get a bank charter, you need to demonstrate that your community needs a bank or an additional bank.
True. You have to prove that the bank is actually necessary and that it would actually be profitable to create it.

c.) Nearly all banks today are regulated by both the Federal Reserve and the FDIC.
True.

d.) The FDIC would rather pay off depositors than be forced to find another bank to take over an ailing institution.
True.

e.) Money is created when someone takes out a bank loan.
This is false. Money is not created when someone takes out a loan. This does allow someone to access money that they normally would not be able to get, but it has to be paid back later. Therefore, money is not created.

Answer by kaps
e is true as when loan is taken the loan is used to buy products or labor hence money is created.

however d is false. if FDIC was to pay off all depositors rather find another institution to take over an ailing bank than no bank will ever fail.