What is the primary responsibility of the administrator appointed by the Board of Directors?

Prepare for the FDIC Technical Evaluation Test with engaging questions and comprehensive explanations. Enhance your knowledge and boost your confidence for the exam!

The primary responsibility of the administrator appointed by the Board of Directors is to liquidate insured depository institutions. This role is crucial, especially during instances where a bank is unable to continue its operations, which may arise from insolvency or other financial difficulties. The administrator ensures that the liquidation process is handled efficiently and in compliance with relevant regulations, protecting the interests of depositors and creditors.

Liquidation involves winding down the bank's affairs, which includes selling off assets, settling claims, and disbursing any remaining funds to stakeholders following the priority established by law. This responsibility is critical to maintaining stability in the financial system and ensuring a structured approach to handling the closure of a failing institution.

The other options provided relate to different fiduciary duties or roles that are not the primary focus when it comes to the appointment of an administrator by the Board of Directors in a context where liquidation is necessary. Managing investor relations, overseeing bank mergers, or providing customer service training do not directly correlate with the urgent and specialized task of liquidating a bank.

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