Federal deposit insurance covers deposits up to $250,000,but as part of a doctrine called "too-big-to-fail" the FDIC sometimes ends up covering all deposits to avoid disrupting the financial system. When the FDIC does this,it uses the

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The "purchase and assumption" method is when the FDIC sells the failed bank's assets to a healthy bank, which assumes the failed bank's deposits. This method is often used to avoid disrupting the financial system and ensure customers retain access to their deposits, making it the best choice for the given scenario. The other options are not relevant to the FDIC's role in covering deposits.

Federal Deposit Insurance Covers Deposits Up to $250,000,but as Part