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You Have $240,000

Question 16

Multiple Choice

You have $240,000. You deposit half in a branch of the Royal Bank and half in a branch of TD Canada Trust. There is a great depression, and both the Royal Bank and TD Canada Trust are unable to pay their depositors. Fortunately, the Canada Deposit Insurance Company still has sufficient funds to pay its insured. Which of the following is TRUE?


A) The $120,000 you deposited in each institution is insured and CDIC will pay you $240,000
B) CDIC will only pay you for money if it was deposited in a savings accounts at both banks but not money that was in chequing accounts
C) CDIC will pay you $100,000 for the deposit in the Royal Bank
D) CDIC will pay you $100,000 for the deposit in TD Canada Trust
E) Both C and D

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