Question

Meredith has $630,000 she wants to save. If the FDIC insurance limit per

depositor, per bank, is $250,000, which of these ways of distributing her
money between three banks will guarantee that all of her money is insured?
A. $200,000 in bank A, $200,000 in bank B, $230,000 in bank C
B. $200,000 in bank A, $170,000 in bank B, $260,000 in bank C
C. $160,000 in bank A, $180,000 in bank B, $290,000 in bank C
D. $160,000 in bank A, $200,000 in bank B, $270,000 in bank C
you

Answer 1

$200,000 in bank A, $200,000 in bank B, $230,000 in bank C

Explanation:

Meredith has $630,000

Limit per depositor, per bank, is $250,000

She needs to distribute her money between three Banks to guarantee that her money is insured.

A. $200,000 in bank A, $200,000 in bank B, $230,000 in bank C

It can be seen in A that her deposit per bank deposit didn't exceed the $250,000 limit in the three Banks.

B. $200,000 in bank A, $170,000 in bank B, $260,000 in bank C

Here, her deposit in bank C exceeds $250,000, so there is no guarantee for insurance in bank C

C. $160,000 in bank A, $180,000 in bank B, $290,000 in bank C

Her deposit in bank C is $290,000 which exceeds the $250,000 limit. Therefore, no guarantee for insurance of her money in bank C

D. $160,000 in bank A, $200,000 in bank B, $270,000 in bank C

you

Also, her deposit in bank C exceeds $250,000, so there is no guarantee for insurance in bank C

The way her money can be distributed between three Banks and guarantee insurance is

A. $200,000 in bank A, $200,000 in bank B, $230,000 in bank C.

That way, her deposit per bank is less than the $250,000 limit