Final answer:
The FDIC evaluates bank risk by examining balance sheets, ensuring that if there is a failure, depositors are insured up to $250,000.
Step-by-step explanation:
The student's question seems to be comparing the amount of cash held at personal risk by a Depositary Officer (DO) and their agents against an unspecified entity.
Though the question is incomplete, in terms of the FDIC coverage concerning bank failures, it's important to recognize that the Federal Deposit Insurance Corporation (FDIC) evaluates a bank's risk by reviewing its balance sheets, specifically the asset and liability values.
The purpose of this examination is to safeguard individuals' deposits and maintain stability in the banking system.
Since its inception in the 1930s, the FDIC provides deposit insurance to a large number of banks ensuring that in the event of a bank failure, depositors will receive up to $250,000 per account.
This insurance is usually sufficient for most individuals but might be inadequate for businesses with larger amounts of cash.
The institution of deposit insurance has effectively eliminated the occurrence of bank runs on insured banks as the assurance of reimbursement up to the insured limit mitigates the personal risk associated with holding cash in these accounts.