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 $68 comma 55868,558 and two individual accountslong dash—his has a $138 comma 348138,348 balance, and hers has a $253 comma 634253,634 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 and Cynthia have a total of $460 comma 540460,540 in this institution. Each institution is insured up to $250,000, so they are over the insurance limit by $210 comma 540210,540 and should move money into other institutions. B. Tony's account balance of $138 comma 348138,348 is completely covered as is their joint account of $68 comma 55868,558; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $3 comma 6343,634, but is fully insured because they only have $68 comma 55868,558 in their joint account. C. Tony's account balance of $138 comma 348138,348 is completely covered as is their joint account of $68 comma 55868,558; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $3 comma 6343,634, but their money would be covered if she moved some into their joint account or into another institution. D. Tony's account balance of $138 comma 348138,348 is not covered and neither is their joint account of $68 comma 55868,558. This is because Cynthia's account balance of $253 comma 634253,634 is over the insurance limit by $3 comma 6343,634, therefore the institution does not have to insure any of their accounts.
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 $68 comma 55868,558 and two individual accountslong dash—his has a $138 comma 348138,348 balance, and hers has a $253 comma 634253,634 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 and Cynthia have a total of $460 comma 540460,540 in this institution. Each institution is insured up to $250,000, so they are over the insurance limit by $210 comma 540210,540 and should move money into other institutions. B. Tony's account balance of $138 comma 348138,348 is completely covered as is their joint account of $68 comma 55868,558; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $3 comma 6343,634, but is fully insured because they only have $68 comma 55868,558 in their joint account. C. Tony's account balance of $138 comma 348138,348 is completely covered as is their joint account of $68 comma 55868,558; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $3 comma 6343,634, but their money would be covered if she moved some into their joint account or into another institution. D. Tony's account balance of $138 comma 348138,348 is not covered and neither is their joint account of $68 comma 55868,558. This is because Cynthia's account balance of $253 comma 634253,634 is over the insurance limit by $3 comma 6343,634, therefore the institution does not have to insure any of their accounts.
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
$68 comma 55868,558
and two individual
accountslong dash—his
has a
$138 comma 348138,348
balance, and hers has a
$253 comma 634253,634
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 and Cynthia have a total of
$460 comma 540460,540
in this institution. Each institution is insured up to $250,000, so they are over the insurance limit by
$210 comma 540210,540
and should move money into other institutions.Tony's account balance of
$138 comma 348138,348
is completely covered as is their joint account of
$68 comma 55868,558;
both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by
$3 comma 6343,634,
but is fully insured because they only have
$68 comma 55868,558
in their joint account.Tony's account balance of
$138 comma 348138,348
is completely covered as is their joint account of
$68 comma 55868,558;
both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by
$3 comma 6343,634,
but their money would be covered if she moved some into their joint account or into another institution.Tony's account balance of
$138 comma 348138,348
is not covered and neither is their joint account of
$68 comma 55868,558.
This is because Cynthia's account balance of
$253 comma 634253,634
is over the insurance limit by
$3 comma 6343,634,
therefore the institution does not have to insure any of their accounts.AI-Generated Solution
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