Please explain why Erin has the following liquid assets on d

*Please explain why*

Erin has the following liquid assets on deposits with her bank, which is an FDIC-insured institution

Account

Balance

CD

Erin

$200,000

Savings

Erin with spouse

$50,000

IRA (money market deposit account)

Erin

$75,000

Checking account

Erin

$90,000

What is the total amount currently insured by the FDIC?

Solution

Federal Deposit Insurance Corporation has a insurance of $250,000.

Now for Joint accounts they are divided by number of persons,

Therefore it is 50,000/2=25000

200,000+25,000+75,000+90,00= $390,000

Limited to 250,000 per customer, therefore ERIN is insured for $250,000, and unisured for $140,000

Erin\'s SPouse is insured for 2,5000

Total currently insured for $250,000(Erin)+25000(Spouse)= $275,000