The following table shows the market value balance sheet of a failed bank ($ millions): $$\begin{array} { | l | l | l | l | }
\hline \text { Assets } & 400 & \text { Insured Deposits } & \$ 200 \
\hline & & \text { Uninsured Deposits } & \$ 400 \
\hline
\end{array}$$ If the insured depositor transfer resolution method is utilized, what is the cost to the FDIC of bank failure resolution?

Question

The following table shows the market value balance sheet of a failed bank ($ millions): $$\begin{array} { | l | l | l | l | } 
\hline \text { Assets } & 400 & \text { Insured Deposits } & \$ 200 \
\hline & & \text { Uninsured Deposits } & \$ 400 \
\hline
\end{array}$$ If the insured depositor transfer resolution method is utilized, what is the cost to the FDIC of bank failure resolution?

Quizplus · Accepted Answer

The FDIC will not incur any costs because the insured deposits are fully covered by the FDIC insurance fund.

The Following Table Shows the Market Value Balance Sheet of a Failed