Which federal program insures bank deposits?

Which federal program insures bank deposits?

• A. Social Security
• B. Medicare
• C. National Flood Insurance Program
• D. Federal Deposit Insurance Corporation

Answer: (D)

This question tests knowledge of which federal program protects bank deposits. The Federal Deposit Insurance Corporation, or FDIC, is the program that provides deposit insurance for bank accounts. If a bank fails, the FDIC steps in to reimburse depositors for their insured deposits, up to the established limit for each depositor at each insured bank. This protection applies to everyday accounts like checking and savings, as well as certain time deposits like certificates of deposit. It’s important to note that the FDIC covers deposit accounts, not investments such as stocks, bonds, mutual funds, or life insurance policies. The other programs listed serve different purposes: Social Security offers retirement and disability benefits; Medicare provides health insurance for eligible individuals; the National Flood Insurance Program offers flood insurance.

This question tests knowledge of which federal program protects bank deposits. The Federal Deposit Insurance Corporation, or FDIC, is the program that provides deposit insurance for bank accounts. If a bank fails, the FDIC steps in to reimburse depositors for their insured deposits, up to the established limit for each depositor at each insured bank. This protection applies to everyday accounts like checking and savings, as well as certain time deposits like certificates of deposit. It’s important to note that the FDIC covers deposit accounts, not investments such as stocks, bonds, mutual funds, or life insurance policies. The other programs listed serve different purposes: Social Security offers retirement and disability benefits; Medicare provides health insurance for eligible individuals; the National Flood Insurance Program offers flood insurance.