Final answer:
Rolando will get back $120,000, which is the full amount of his deposit, as it is covered by the FDIC insurance limit of $250,000 per depositor, per insured bank. a. $250,000
Step-by-step explanation:
The question at hand involves understanding the protection mechanisms in place for depositors in the event of a bank failure. Rolando had $120,000 in a certificate of deposit (CD) at Big Bucks Bank, which unfortunately failed. Thanks to the Federal Deposit Insurance Corporation (FDIC) insurance limit per depositor, per insured bank, being $250,000, Rolando will receive full coverage for his deposit amount.
Since the establishment of deposit insurance in the 1930s within the United States, there have been robust safeguards to protect individual depositors. The FDIC is an independent agency created by Congress that preserves and promotes public confidence in the U.S. financial system.
For individuals like Rolando, who have deposits within the insured limit, the FDIC ensures that their money is safe even in the event of a bank failure. Therefore, the answer to how much Rolando will get back is $120,000, which corresponds to the full amount of his deposit in the CD at Big Bucks Bank.