Question

Evan had three accounts as listed below. In 2017, how much was his total insurance coverage by the FDIC?

Bank A: $150,000
Bank B: $50,000
Bank C: $350,000

Select one:
A. $550,000
B. $350,000
C. $450,000
D. $200,000
E. $150,000

Answer 1

Evan was insured for $150,000 in Bank A, $50,000 in Bank B, and the FDIC covers up to $250,000 per bank, meaning only $250,000 of the $350,000 he had in Bank C was insured. His total FDIC insurance coverage amounted to $450,000 in 2017. The correct answer is option C.

Step-by-step explanation:

The student asked how much total insurance coverage Evan had for his three accounts combined in 2017 under the FDIC. Evan had $150,000 in Bank A, $50,000 in Bank B, and $350,000 in Bank C.

Based on the FDIC deposit insurance rules, each depositor is insured for up to $250,000 per bank.

Therefore, Evan's total insured amount would be fully covered for Bank A and Bank B, but for Bank C, only $250,000 would be insured out of the $350,000, since the coverage limit per bank is $250,000.

Adding these together:

• Bank A: $150,000
• Bank B: $50,000
• Bank C: $250,000 (maximum FDIC coverage)

So, the answer to the question is:

Bank A + Bank B + Insured part of Bank C = $150,000 + $50,000 + $250,000 = $450,000

Therefore, the total FDIC insurance coverage Evan had in 2017 was $450,000.