Evan had three accounts as listed below. In 2014, how much was his total insurance coverage by the FDIC?
• Bank A: $150,000
• Bank B: $50,000
• Bank C: $350,000

Question

Quizplus · Accepted Answer

The FDIC insures up to $250,000 per depositor, per insured bank. Therefore, Evan's total insurance coverage in 2014 would be $250,000 for Bank A, $50,000 for Bank B, and $250,000 for Bank C. Adding these up gives a total insurance coverage of $550,000, but since the FDIC only insures up to $250,000 per insured bank, the maximum coverage Evan can receive is $250,000 for each of the three banks. Thus, the total insurance coverage is $250,000 + $250,000 + $250,000 = $750,000, but only up to $250,000 per bank is actually insured, which adds up to a total of $750,000. Therefore, the correct answer choice is D) $450,000.

Evan Had Three Accounts as Listed Below