$400,000
Coverage under SIPC may not exceed $500,000 in cash and securities, of which up to $250,000 may be cash. In the cash account, his coverage is $300,000 in securities plus $40,000 in cash. In the long margin account, the coverage is only the equity, which is $60,000. Total: $300,000 + $40,000 + $60,000 = $400,000.
A customer has a significant amount of money in bank deposit accounts: $225,000 in a savings account titled in the customer's name; $240,000 in a checking account titled jointly with a spouse; and $100,000 in an account where the customer is custodian for a grandchild. Should that bank fail, the Federal Deposit Insurance Corporation [FDIC] insurance would cover
A] $250,000 for the savings and checking accounts and $100,000 for the custodial account.
B] $225,000 for the savings account, $100,000 for the custodial account, and nothing for the checking
account.
C] the entire $565,000.
D] a total of $250,000, divided proportionately among the three accounts.
A customer has a significant amount of money in bank deposit accounts: $225,000 in a savings account titled in the customer's name; $240,000 in a checking account titled jointly with a spouse; and $100,000 in an account where the customer is custodian for a grandchild. Should that bank fail, the Federal Deposit Insurance Corporation [FDIC] insurance would cover
A] the entire $565,000.
B] a total of $250,000, divided proportionately among the three accounts.
C] $225,000 for the savings account, $100,000 for the custodial account, and nothing for the checking account.
D] $250,000 for the savings and checking accounts and $100,000 for the custodial account.
An investor opens an account with BNZ Government Securities, a broker-dealer limiting its transactions exclusively to securities issued by the U.S. government. The account holds $250,000 of Treasury bonds, $250,000 of Treasury notes, and $50,000 in cash. If BNZ's broker-dealer business should fail, the investor would receive Securities Investor Protection Corporation [SIPC] protection in the amount of
A] all of the securities and all of the cash, because U.S. government securities do not go bankrupt.
B] $500,000 of the securities and none of the cash.
C] $0.
D] $50,000 of the cash and $450,000 of the
securities.
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