Which acronym is associated with protecting bank deposits?

Which acronym is associated with protecting bank deposits?

• A. Federal Deposit Insurance Corporation
• B. Federal Emergency Management Agency
• C. National Transportation Safety Board
• D. Central Intelligence Agency

Answer: (A)

Deposit protection for bank customers is provided by the FDIC—the Federal Deposit Insurance Corporation. It guarantees deposits at insured banks up to a set limit, so if a bank fails, depositors get their money back quickly and securely. The limit is currently up to 250,000 dollars per depositor, per insured bank, for common accounts like checking, savings, money market accounts, and certificates of deposit. If a bank closes, the FDIC either moves insured funds to another healthy bank or pays the insured amount directly. Deposits at different banks are insured separately, while multiple accounts at the same bank add up toward the limit. The other organizations listed handle disaster relief, safety investigations, and intelligence, not deposit insurance.

Deposit protection for bank customers is provided by the FDIC—the Federal Deposit Insurance Corporation. It guarantees deposits at insured banks up to a set limit, so if a bank fails, depositors get their money back quickly and securely. The limit is currently up to 250,000 dollars per depositor, per insured bank, for common accounts like checking, savings, money market accounts, and certificates of deposit. If a bank closes, the FDIC either moves insured funds to another healthy bank or pays the insured amount directly. Deposits at different banks are insured separately, while multiple accounts at the same bank add up toward the limit. The other organizations listed handle disaster relief, safety investigations, and intelligence, not deposit insurance.