Nick has accumulated $40,000 in his savings account but unfortunately he just learned that his bank went out of business how much of his account balance can Nick expect to receive back
Typically, when a bank goes out of business, the accounts of their customers are protected by the Federal Deposit Insurance Corporation (FDIC) up to a certain limit. Currently, the FDIC insures up to $250,000 per depositor, per insured bank.
Since Nick has $40,000 in his savings account, he can expect to receive the full amount back as it is well below the FDIC insurance limit.