The payoff method used by the FDIC to address the insolvency of a bank is when the FDIC:
A) pays the owners of the bank for the losses they would otherwise face.
B) pays off all depositors the balances in their accounts so no depositor suffers a loss, though the owners of the bank may suffer losses.
C) pays off the depositors up to the current $250,000 limit, so it is possible that some depositors will suffer losses.
D) takes all of the assets of the bank, sells them, pays off the liabilities of the bank in full, and then replenishes their fund with any remaining balance.

Question

Quizplus · Accepted Answer

The FDIC insures deposits up to the $250,000 limit per depositor, per insured bank, for each account ownership category. This means that in the event of a bank failure, the FDIC will pay depositors up to the insured amount, but it's possible for depositors with balances exceeding this limit to suffer losses.

The Payoff Method Used by the FDIC to Address the Insolvency