After reading the new account insert in his monthly statement, Tony Mercadante determined that the FDIC considers a joint account as a separate depositor. He and his wife, Cynthia, have three accounts at ABC Bank & Trust, one joint account with a balance of $79, 963 and two individual accounts--- his has a $123,187 balance, and hers has a $255,053 balance. What amount of FDIC coverage do Tony and Cynthia have on their accounts?

What amount of FDIC coverage do Tony and Cynthia have on their accounts?

A.Tony's account balance of $123,187 is not covered and neither is their joint account of $79,963. This is because Cynthia's account balance of $255,053

is over the insurance limit by $5,053,

therefore the institution does not have to insure any of their accounts.

B.Tony's account balance of $123,187

is completely covered as is their joint account of $79,963; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $5,053, but is fully insured because they only have $79,963 in their joint account.

C.Tony and Cynthia have a total of $458,203 in this institution. Each institution is insured up to $250,000, so they are over the insurance limit by $208,203 and should move money into other institutions.

D.Tony's account balance of $123,187 is completely covered as is their joint account of $79,963; both accounts are under the $250,000 FDIC limit. Cynthia's account is over the insurance limit by $5,053,but their money would be covered if she moved some into their joint account or into another institution.