Question

in 2007, the fdics insurance limit was $100,000 per person per bank. approximately 62% of gils deposits were insured by the fdic. which of the following was a possible setup for gils deposits? a. a $13,000 money market account at bank t; a $31,000 cd, $44,000 savings account, and $16,000 checking account at bank u; a $70,000 cd and $28,000 money market account at bank v b. a $54,000 checking account and $84,000 savings account at bank t; a $28,000 money market account, $27,000 savings account, and $20,000 cd at bank u; a $130,000 cd at bank v c. a $60,000 money market account and $70,000 savings account at bank t; a $40,000 checking account and $92,000 savings account at bank u; a $45,000 cd and $75,000 checking account at bank v d. a $108,000 savings account and $46,000 cd at bank t; a $36,000 money market account and $38,000 cd at bank u; a $63,000 checking account, $80,000 savings account, and $70,000 money market account at bank v

Explanation:

Step1: Calculate total deposits for option a

Total deposits at Bank T: $13000$. Total at Bank U: $31000 + 44000+16000=91000$. Total at Bank V: $70000 + 28000 = 98000$. Total deposits = $13000+91000 + 98000=202000$. Insured amount: Bank T is fully insured ($13000$), Bank U is fully insured ($91000$), Bank V has $100000$ insured. Total insured = $13000+91000 + 100000=204000$. Percentage insured: $\frac{204000}{202000}\times100\%\approx101\%$.

Step2: Calculate total deposits for option b

Total deposits at Bank T: $54000+84000 = 138000$ (insured $100000$). At Bank U: $28000+27000+20000=75000$ (fully insured). At Bank V: $130000$ (insured $100000$). Total deposits = $138000+75000+130000 = 343000$. Total insured = $100000+75000+100000=275000$. Percentage insured: $\frac{275000}{343000}\times100\%\approx80\%$.

Step3: Calculate total deposits for option c

Total deposits at Bank T: $60000+70000 = 130000$ (insured $100000$). At Bank U: $40000+92000=132000$ (insured $100000$). At Bank V: $45000+75000 = 120000$ (insured $100000$). Total deposits = $130000+132000+120000=382000$. Total insured = $100000+100000+100000=300000$. Percentage insured: $\frac{300000}{382000}\times100\%\approx78.5\%$.

Step4: Calculate total deposits for option d

Total deposits at Bank T: $108000+46000=154000$ (insured $100000$). At Bank U: $36000+38000 = 74000$ (fully insured). At Bank V: $63000+80000+70000=213000$ (insured $100000$). Total deposits = $154000+74000+213000=441000$. Total insured = $100000+74000+100000=274000$. Percentage insured: $\frac{274000}{441000}\times100\%\approx62.1\%$.

Answer:

D. A $108,000$ savings account and $46,000$ CD at Bank T; a $36,000$ money market account and $38,000$ CD at Bank U; a $63,000$ checking account, $80,000$ savings account, and $70,000$ money market account at Bank V