Angelo has $700,000 he wants to save. If the FDIC insurance limit per depositor, per bank is $250,000, which of these ways of distributing his money between 3 banks will guarantee that all of his money is insured?

A. $225,000 in bank A, $260,000 in bank B, $215,000 in bank C
B. $205,000 in bank A, $220,000 in bank B, $275,000 in bank C
C. $225,000 in bank A, $240,000 in bank B, $235,000 in bank C
D. $205,000 in bank A, $240,000 in bank B, $255,000 in bank C

Among the choices provided above the ways of distributing his money between 3 banks will guarantee that all of his money is insured is by letter C which is "$225,000 in bank A, $240,000 in bank B, $235,000 in bank C"

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majocgonzalez majocgonzalez · Answer 2 · 2019-12-06T22:57:05+01:00

Answer:

C. $225,000 in bank A, $240,000 in bank B, $235,000 in bank C

Explanation:

As the FDIC has a limit of $250,000 per depositor per bank, the best option people have when they have an amount of money higher than $250,000 is to divide it and put it in several banks to get more protection. In this case, what Angelo has to do is to distribute the money in the three banks and have in each of them an amount less than or equal to $250,000 to guarantee that all of his money is insured. Because of this, the answer is $225,000 in bank A, $240,000 in bank B, $235,000 in bank C as it is the only option given where all the banks have less than $250,000.