19-103 What is the cost to the insured depositors if the insured depositor transfer resolution method is used by the regulators to resolve the bank failure?

Question

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If the insured depositor transfer resolution method is used, the cost to the insured depositors is $0, as their deposits will be transferred to another bank with full FDIC insurance coverage. The cost of resolving the bank failure will be borne by the FDIC's Deposit Insurance Fund, which is funded by premiums paid by insured banks.

19-103 What Is the Cost to the Insured Depositors If