**Case Study c14**You have savings accounts at two separately FDIC-insured banks, ABC Bank and XYZ Bank. At ABC, your account has a balance of $200,000. At XYZ Bank, the account balance is $60,000.**a. If both banks fail, how much will you receive?****b. You find out that ABC and XYZ Banks are going to merge. If you are concerned about the possibility of the new bank failing, what would you do?****Explanation:**This scenario involves understanding FDIC insurance limits and the potential impact of bank mergers on your insured deposits. The FDIC (Federal Deposit Insurance Corporation) insures accounts up to $250,000 per depositor, per insured bank. If both banks fail, your total insured amount will be determined based on these limits.In the case of a bank merger, it is important to reassess the total amount held in the new entity to ensure it remains within FDIC insurance limits. You might consider diversifying your accounts across different banks to maintain full insurance coverage.

Given the deposit amount in ABC bank = $200000 The deposit amount in XYZ bank = $60000

c14. You have savings accounts at two separately FDIC insured banks, ABC Bank and XYZ bank. At ABC your account has a balance of $200,000. At XYZ bank the account balance is $60,000. a. If both banks fail how much will you receive? b. You find out that ABC and XYZ banks are going to merge. If you are concerned about the possibility of the new bank failing what would you do?

c14. You have savings accounts at two separately FDIC insured banks, ABC Bank and XYZ bank. At ABC your account has a balance of $200,000. At XYZ bank the account balance is $60,000. a. If both banks fail how much will you receive? b. You find out that ABC and XYZ banks are going to merge. If you are concerned about the possibility of the new bank failing what would you do?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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