FDIC Deposit Insurance Flashcards
When maintaining an account involving a fiduciary, what must be done with the evidence of the fiduciary relationship?
a. It may be kept by the depositor in his or her records at home or at his or her place of business.
b. It must be expressly disclosed in the deposit account records.
c. It may be maintained by the depositor or the bank as long as the records are clear.
d. It must be forwarded to the FDIC at the time of account opening.
b. It must be expressly disclosed in the deposit account records.
Timothy Edwards inherited some money from his father and decided to put the funds in several accounts at First National Bank. Timothy has an individual savings account with a balance of $1,400,000. He and his wife, Sylvia, have a savings account with a balance of $750,000. They also have a joint NOW account with a balance of $280,000. In addition, they have the following trust accounts for their children, John and Suzanne: Timothy, trustee for John (balance $195,000); Timothy, trustee for Suzanne (balance $195,000); Sylvia, trustee for John (balance $120,000); Sylvia, trustee for Suzanne (balance $120,000). What is the total balance in the accounts of this family that is covered by deposit insurance, assuming a SMDIA of $250,000?
a. $1,380,000
b. $1,660,000
c. $1,130,000
d. $1,140,000
a. $1,380,000
For the following questions, assume that the following are interest-bearing accounts at First National Bank and the SMDIA is $250,000:
Single Accounts Balances
Jim $300,000
Fred $350,000
Joint Accounts Balances
Jim and Fred $180,000
Fred and Jim $160,000
Susan and Jim $200,000
How much of Jim’s money is covered by deposit insurance?
a. $500,000
b. $530,000
c. $570,000
d. $590,000
a. $500,000
For the following questions, assume that the following are interest-bearing accounts at First National Bank and the SMDIA is $250,000:
Single Accounts Balances
Jim $300,000
Fred $350,000
Joint Accounts Balances
Jim and Fred $180,000
Fred and Jim $160,000
Susan and Jim $200,000
How much of Fred’s money is covered by deposit insurance?
a. $520,000
b. $420,000
c. $350,000
d. $170,000
b. $420,000
For questions 5 and 6, assume that the following are interest-bearing accounts at First National Bank and the SMDIA is $250,000:
Single Accounts Balances
Jim $250,000
Fred $350,000
Joint Accounts
Jim and Fred $180,000
Fred and Jim $160,000
Susan and Jim $300,000
How much of Jim’s money is covered by deposit insurance?
a. $890,000
b. $640,000
c. $570,000
d. $500,000
d. $500,000
For questions 5 and 6, assume that the following are interest-bearing accounts at First National Bank and the SMDIA is $250,000:
Single Accounts Balances
Jim $250,000
Fred $350,000
Joint Accounts
Jim and Fred $180,000
Fred and Jim $160,000
Susan and Jim $300,000
How much of Fred’s money is covered by deposit insurance?
a. $420,000
b. $500,000
c. $350,000
d. $340,000
a. $420,000
ABC Bank failed with the following accounts for Fred Jones on its books: • A certificate of deposit in the name of Fred Jones with a principal balance of $250,000 and accrued interest of $6,250 An account for Fred Jones, for which Mr. Jones has now provided documentation showing that he opened the account as a payable-on-death account for his son; the account has a balance of $1.25 million An IRA for the benefit of Fred Jones with a balance of $250,000 An account styled “Fred Jones, trustee for Nancy Jones and Roger Wilson” with a balance of $200,000; Nancy is Fred’s daughter, Roger is Fred’s brother If the SMDIA is $250,000, how much of Fred’s money is insured?
a. $950,000
b. $750,000
c. $700,000
d. $500,000
c. $700,000
ABC Bank failed with the following accounts for Natalie Nguyen on its books:
A certificate of deposit in the name of Natalie Nguyen with a principal balance of $225,000 and accrued interest of $5,000
A savings account in the name of Natalie and her mother Sheila with a balance of $600,000
An IRA for the benefit of Natalie with a balance of $350,000
An account styled Natalie Nguyen payable on death to Monica Williams (Natalie’s best friend) with a balance of $200,000
If the SMDIA is $250,000, how much of Natalie’s money is insured?
a. $980,000
b. $930,000
c. $750,000
d. $830,000
b. $930,000
Consider the following deposit balance information: Account Name
Deposit Balance
Ann Jones $ 50,000
Ann Jones $ 50,000
Jim Smith and Ann Jones $ 50,000
Jim Smith $ 75,000
Ann Jones: Agent for Jim Smith $ 75,000
Ann Jones and Jim Smith $100,000
TOTAL $400,000
How much of the $400,000 is FDIC insured if the SMDIA is $250,000?
a. $275,000
b. $325,000
C. $350,000
d. $400,000
d. $400,000
Consider the following deposit balance information: Account Name
Deposit Balance
Ann Jones $ 150,000
Ann Jones $ 250,000
Jim Smith and Ann Jones $ 250,000
Jim Smith $ 175,000
Ann Jones: Agent for Jim Smith $ 475,000
Ann Jones and Jim Smith $ 300,000
TOTAL $1,600,000
How much of the $1,600,000 is FDIC insured if the SMDIA is $250,000?
a. $725,000
b. $750,000
c. $1,000,000
d. $1,600,000
c. $1,000,000
An insured depository institution (“IDI’) is required to comply with the information technology requirements of 12 CFR Part 370 if during the two consecutive preceding quarters the IDI had:
a. One million or more deposit accounts
b. Two million or more deposit accounts and at least $10 billion in assets
c. Two million or more deposit accounts
d. At least $10 billion in assets
c. Two million or more deposit accounts
