After Bill and Jillian Deposited Nearly $30,000 in a Savings

question 151

Multiple Choice

After Bill and Jillian deposited nearly $30,000 in a savings account at Farmers National Bank, the bank failed and filed for bankruptcy. Because the Farmers National Bank participates in the FDIC, Bill and Jillian:

• A)should be okay because their account is fully insured by the FDIC.
• B)can recover up to $20,000, 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:

Economic Change

Alterations in the economic conditions or environment, such as growth, recession, inflation, or changes in market demand.

Market Opportunities

Refers to favorable external factors that could help an organization to grow its market share.

Income and Wealth

Income refers to the flow of money received, typically on a regular basis, while wealth represents the accumulation of valuable resources or assets.

Cost Control

The practice of managing and monitoring expenses to keep them within the defined budget, ensuring that a project or operation remains financially viable.