Eileen puts $10,000 in a federally insured checking 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 there is a run on the First National Bank.

Question

Quizplus · Accepted Answer

Eileen's deposit is federally insured, which means that even if the First National Bank goes bankrupt or Norma defaults on her loan, Eileen will still receive her $10,000 back from the Federal Deposit Insurance Corporation (FDIC), up to the insured limit of $250,000.

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