Considering the Methods Available to the FDIC for Dealing with a Failed

Multiple Choice

Considering the methods available to the FDIC for dealing with a failed bank, the depositors of the failed bank should:

A) Be indifferent between the two since it really does not matter to them which method is used
B) Prefer the purchase and assumption method since the deposits over $250,000 will also be protected
C) Prefer the payoff method because they will have access to their funds earlier
D) Prefer the payoff method since a lot less paperwork is involved for the depositor