Laura Keeps Only $250,000 Combined in Her Savings and Checking

question 218

Multiple Choice

Laura keeps only $250,000 combined in her savings and checking accounts at Union Bank because she knows that

• A) any more will not earn additional interest.
• B) this is the maximum allowed under federal law.
• C) her bank prohibits her from depositing more.
• D) her fees will be significantly higher if more money is deposited.
• E) this is the maximum amount insured per depositor.

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Definitions:

Cent

A monetary unit that is equal to one hundredth of the base unit of currency in many countries, such as the dollar or euro.

Accurate

The quality of being true, correct, or precise.

Cent

The smallest unit of currency in many countries, equal to 1/100 of the base unit.

Insurance Broker

A professional intermediary who advises individuals and businesses on insurance needs and negotiates insurance contracts on their behalf with insurers.