After reading the new account insert in his monthly statement, Tony Mercadante determined that the FDIC considers a joint account as a separate depositor. He and his wife, Cynthia, have three accounts at ABC Bank & Trust, one joint account with a balance of $61 comma 34561,345 and two individual accountslong dash—his has a $137 comma 454137,454 balance, and hers has a $252 comma 304252,304 balance. What amount of FDIC coverage do Tony and Cynthia have on their accounts? Question content area bottom Part 1 What amount of FDIC coverage do Tony and Cynthia have on their accounts? (Select the best answer below.) A. Tony's account balance of $137 comma 454137,454 is completely covered as is their joint account of $61 comma 34561,345; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $2 comma 3042,304, but is fully insured because they only have $61 comma 34561,345 in their joint account. B. Tony's account balance of $137 comma 454137,454 is completely covered as is their joint account of $61 comma 34561,345; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $2 comma 3042,304, but their money would be covered if she moved some into their joint account or into another institution. C. Tony's account balance of $137 comma 454137,454 is not covered and neither is their joint account of $61 comma 34561,345. This is because Cynthia's account balance of $252 comma 304252,304 is over the insurance limit by $2 comma 3042,304, therefore the institution does not have to insure any of their accounts. D. Tony and Cynthia have a total of $451 comma 103451,103 in this institution. Each institution is insured up to $250,000, so they are over the insurance limit by $201 comma 103201,103 and should move money into other institutions.
After reading the new account insert in his monthly statement, Tony Mercadante determined that the FDIC considers a joint account as a separate depositor. He and his wife, Cynthia, have three accounts at ABC Bank & Trust, one joint account with a balance of $61 comma 34561,345 and two individual accountslong dash—his has a $137 comma 454137,454 balance, and hers has a $252 comma 304252,304 balance. What amount of FDIC coverage do Tony and Cynthia have on their accounts? Question content area bottom Part 1 What amount of FDIC coverage do Tony and Cynthia have on their accounts? (Select the best answer below.) A. Tony's account balance of $137 comma 454137,454 is completely covered as is their joint account of $61 comma 34561,345; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $2 comma 3042,304, but is fully insured because they only have $61 comma 34561,345 in their joint account. B. Tony's account balance of $137 comma 454137,454 is completely covered as is their joint account of $61 comma 34561,345; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $2 comma 3042,304, but their money would be covered if she moved some into their joint account or into another institution. C. Tony's account balance of $137 comma 454137,454 is not covered and neither is their joint account of $61 comma 34561,345. This is because Cynthia's account balance of $252 comma 304252,304 is over the insurance limit by $2 comma 3042,304, therefore the institution does not have to insure any of their accounts. D. Tony and Cynthia have a total of $451 comma 103451,103 in this institution. Each institution is insured up to $250,000, so they are over the insurance limit by $201 comma 103201,103 and should move money into other institutions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
After reading the new account insert in his monthly statement, Tony Mercadante determined that the FDIC considers a joint account as a separate depositor. He and his wife, Cynthia, have three accounts at ABC Bank & Trust, one joint account with a balance of
$61 comma 34561,345
and two individual
accountslong dash—his
has a
$137 comma 454137,454
balance, and hers has a
$252 comma 304252,304
balance. What amount of FDIC coverage do Tony and Cynthia have on their accounts?Question content area bottom
Part 1
What amount of FDIC coverage do Tony and Cynthia have on their accounts? (Select the best answer below.)
Tony's account balance of
$137 comma 454137,454
is completely covered as is their joint account of
$61 comma 34561,345;
both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by
$2 comma 3042,304,
but is fully insured because they only have
$61 comma 34561,345
in their joint account.Tony's account balance of
$137 comma 454137,454
is completely covered as is their joint account of
$61 comma 34561,345;
both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by
$2 comma 3042,304,
but their money would be covered if she moved some into their joint account or into another institution.Tony's account balance of
$137 comma 454137,454
is not covered and neither is their joint account of
$61 comma 34561,345.
This is because Cynthia's account balance of
$252 comma 304252,304
is over the insurance limit by
$2 comma 3042,304,
therefore the institution does not have to insure any of their accounts.Tony and Cynthia have a total of
$451 comma 103451,103
in this institution. Each institution is insured up to $250,000, so they are over the insurance limit by
$201 comma 103201,103
and should move money into other institutions.AI-Generated Solution
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