Consider a failing bank. How much is a deposit of $$350,000$ if the CDIC uses the payoff method? The purchase$-$and$-$assumption method? Which method is more costly to taxpayers?

Using the payoff method, the $$350,000$ deposit is worth $$,($Round to the nearest dollar$)$

Using the purchase$-$and$-$assumption method, a deposit of $$350,000$ is worth $$,($Round to the nearest dollar$)$

Which method is more costly to taxpayers?

Select the best answer:

A$.$ The purchase and assumption method is more costly$,$ because depositors receive the full value of their deposits.

B$.$ The purchase and assumption method is more costly$,$ because depositors will refuse to keep account balances in excess of $$100,000$ in a single bank.

C$.$ The payoff method is more costly$,$ since the cost to insure the fund will be lower.

D$.$ The payoff method is more costly$,$ since taxpayers will only pay $$0\mathrm{.}10$ on the dollar