Eileen puts $10,000 in a federally insured chequing account at the First National Bank.Norma borrows $10,000 from the First National Bank, flies to a South Pacific island, and is never heard from again.Which of the following best describes what will happen to Eileen's funds?

Question

Quizplus · Accepted Answer

Eileen's funds are in a federally insured chequing account, which means that they are backed by the government up to a certain amount (usually $250,000). Even if the bank were to fail, Eileen's funds would be protected by the government insurance. The fact that Norma borrowed money from the bank and fled to a South Pacific island would not affect the safety of Eileen's funds in her insured account.

Eileen Puts $10,000 in a Federally Insured Chequing Account at the First