Consider a failing bank. How much is a deposit of $300,000 if the CDIC uses the payoff method? The purchase-and-assumption method? Which method is more costly to taxpayers?Using the payoff method, the $300,000 deposit is worth $(Round to the nearest dollar)Using the purchase-and-assumption method, a deposit of $300,000 is worth $ (Round to the nearest dollar)Which method is more costly to taxpayers?Select the best answer:A. The payoff method is more costly, since taxpayers will only pay $0.10 on the dollar.B. The purchase and assumption method is more costly, because depositors receive the full value of their deposits.C. The purchase and assumption method is more costly, because depositors will refuse to keep account balances in excess of $100,000 in a single bank.D. The payoff method is more costly, since the cost to insure the fund will be lower.

Deposit insurance helps in protecting the savings of the depositors in case the financial…

Consider a failing bank. How much is a deposit of $300,000 if the CDIC uses the payoff method? The purchase-and-assumption method? Which method is more costly to taxpayers? Using the payoff method, the $300,000 deposit is worth $ (Round to the nearest dollar) Using the purchase-and-assumption method, a deposit of $300,000 is worth $ (Round to the nearest dollar) Which method is more costly to taxpayers? Select the best answer: OA. The payoff method is more costly, since taxpayers will only pay $0.10 on the dollar. OB. The purchase and assumption method is more costly, because depositors receive the full value of their deposits. OC. The purchase and assumption method is more costly, because depositors will refuse to keep account balances in excess of $100,000 in a single bank. OD. The payoff method is more costly, since the cost to insure the fund will be lower.

Consider a failing bank. How much is a deposit of $300,000 if the CDIC uses the payoff method? The purchase-and-assumption method? Which method is more costly to taxpayers? Using the payoff method, the $300,000 deposit is worth $ (Round to the nearest dollar) Using the purchase-and-assumption method, a deposit of $300,000 is worth $ (Round to the nearest dollar) Which method is more costly to taxpayers? Select the best answer: OA. The payoff method is more costly, since taxpayers will only pay $0.10 on the dollar. OB. The purchase and assumption method is more costly, because depositors receive the full value of their deposits. OC. The purchase and assumption method is more costly, because depositors will refuse to keep account balances in excess of $100,000 in a single bank. OD. The payoff method is more costly, since the cost to insure the fund will be lower.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section: Chapter Questions

Problem 3DTM

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