Final answer:
The statement is true; to fully insure $25,000,000, it would need to be spread across multiple FDIC-insured accounts since the FDIC only insures up to $250,000 per depositor, per insured bank, for each account ownership category.
Step-by-step explanation:
The conclusion presented in the student's question is true. FDIC insurance guarantees depositors will receive up to $250,000 of their deposits in each insured bank account if the bank fails. So, if you deposit the entire $25,000,000 Lottery winnings into one FDIC-insured bank under your name only and the bank becomes insolvent the next day, you would indeed only be able to recover $250,000 from the FDIC. To fully insure the full amount of your winnings, you would indeed need to distribute the funds in increments no greater than $250,000 across different FDIC-insured accounts or joint accounts with other individuals.
To secure such a large sum, some individuals or businesses may also consider financial vehicles beyond traditional deposit accounts, such as investment options that come with different levels of risk and return. However, if keeping at banks and ensuring FDIC coverage is the priority, then spreading the funds across numerous accounts is necessary to achieve full insurance coverage of the $25,000,000.