Alan puts $20,000 in an uninsured savings account at the Boston National Bank. Susie borrows $20,000 from the Boston National Bank, flies to a Central African country, and is never heard from again. Which of the following is true in this case?
A) Alan will lose his $20,000 because he did not provide any security.
B) Alan will lose his $20,000 if he and Susie are related.
C) Alan will lose his $20,000 if the Boston National Bank makes all of its loans to people who run off to South Pacific islands.
D) Alan will not lose his $20,000 no matter what happens to the Boston National Bank.
E) Alan will not lose his $20,000 because the Fed will return the amount to him.
Correct Answer:
Verified
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