The Federal Deposit Insurance Corporation (FDIC) insures deposits in banks and thrift institutions for up to $250,000. Before the banking crisis of late 2008, there were 8,885 FDIC-insured institutions, with deposits of $6,826,804,000,000. Bank of America had deposits of $681,570,000,000 in nearly 6,000 banking centers during 2004.
a. Calculate the average deposits per bank for both FDIC-insured institutions and Bank of America.
b. Describe the relationship between the two averages calculated in part a. Provide a reason for the disparity.
c. Would the two averages be considered to be parameters or statistics? Explain.