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

Answer: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.[tex]175,000<250,000[/tex]Therefore correct option is A. Amelia will get $175,000.