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The primary difference between the payoff and the purchase and assumption methods of handling failed banks is.

Sagot :

At the time of handling failed banks, the main difference between the payoff method and the purchase & assumption methods is that the entire bank deposits are guaranteed by FDIC.

Who is FDIC?

FDIC stands for federal deposit insurance corporation is the depository insurance that provides deposits to the depositing parties of American depository institutions.

According to FDIC, it guarantees all the bank deposits in the method of purchase and assumption by acquiring proportionate or entire failed assets or assuming some or all of the failed obligations of failed banks but In the pay-off method, FDIC pays directly the amounts of every depositor.

Therefore, in both methods, the deposits are guaranteed by FDIC but in different ways.

Learn more about the FDIC in the related link:

https://brainly.com/question/9613712

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