Eileen puts $10,000 in an uninsured savings 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 is true?
A) Eileen will lose her $10,000.
B) Eileen will lose her $10,000 if she and Norma are related.
C) Eileen will lose her $10,000 if the First National Bank makes all of its loans to people who run off to South Pacific islands.
D) Eileen will not lose her $10,000 no matter what happens to the First National Bank.
E) Eileen will not lose her $10,000 unless the Fed fails.
Correct Answer:
Verified
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