Amelia had $175,000 in a cd at treasure trove bank, which just failed. if the fdic insurance limit per depositor per bank is $250,000, how much will amelia get back? a. $175,000 b. $75,000 c. $0 d. $250,000

The correct option is A. Amelia will get $175,000.

Step-by-step explanation:

It is given that Amelia had $175,000 in a CD at Treasure Trove Bank, which just failed and FDIC insurance limit per depositor per bank is $250,000.

It means the FDIC insurance company will settle the loss till $250,000.

If the deposited amount of depositors is less than $250,000, then they will get their total deposited amount and if the deposited amount of depositors is greater than or equal to $250,000, then they will get only $250,000.

Since the deposited amount of Amelia is $175,000, which is less than $250,000, therefore she will get her total deposited amount.

Therefore correct option is A. Amelia will get $175,000.

Option A

Step-by-step explanation:

Deposit amount of Amelia in CD at Treasure Trove Bank is $175,000 which just failed.

FDIC insurance limit per depositor per bank is $250,000.

It means,

1. Depositor will get their total amount if the amount is less than or equal to $250,000.

2. Depositor will get $250,000 if the amount is more than $250,000.

Her amount in CD at Treasure Trove Bank is $175,000, which is less than $250,000, therefore she will get her total amount, i.e., 175,000.

She will get $175,000. Therefore, the correct option is A.

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step-by-step explanation:

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the correct answer is b