You know how bank accounts are FDIC insured up to $100,000 each? So where would a multi-billion dollar company keep its cash reserves? If it keeps all of its cash in one account, then only $100,000 of that money is insured. Does the company then have many accounts each with a balance of just $100,000? Or does it purchase some special kind of insurance that covers all of its cash assets?
Many thanks,
C.L.
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