After Xavier and Alyssa Deposited Nearly $55,000 in a Savings

question 68

Multiple Choice

After Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy. Because the Bigbux was an FDIC member bank, Xavier and Alyssa

• A) should be protected because their account is fully insured by the FDIC.
• B) can recover up to $25,000, but they will probably lose the rest since their deposits exceed the maximum coverage offered by the FDIC.
• C) will lose their savings because the FDIC only insures business deposits.
• D) will be eligible to recover 80 percent of the value of their deposit, less a $2,500 deductible.

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Definitions:

Obsessive-compulsive Disorders

A type of anxiety disorder marked by uncontrollable, reoccurring thoughts (obsessions) and behaviors (compulsions) that the person feels the urge to repeat over and over.

Cognitive-behaviorist

A practitioner of cognitive-behavioral therapy, a form of psychotherapy that focuses on modifying dysfunctional emotions, behaviors, and thoughts by interrogating and uprooting negative or irrational beliefs.

Dog Phobia

An intense, irrational fear of dogs, leading to significant anxiety and avoidance behaviors.

Modeling

In psychology, a therapeutic technique that involves learning through the observation of others’ behaviors and the outcomes of those behaviors.