The Payoff Method Used by the FDIC to Address the Insolvency

Multiple Choice

The payoff method used by the FDIC to address the insolvency of a bank is when the FDIC:

A) pays the owners of the bank for the losses they would otherwise face.
B) pays off all depositors the balances in their accounts so no depositor suffers a loss, though the owners of the bank may suffer losses.
C) pays off the depositors up to the current $250,000 limit, so it is possible that some depositors will suffer losses.
D) takes all of the assets of the bank, sells them, pays off the liabilities of the bank in full, and then replenishes their fund with any remaining balance.