The FDIC insures deposits up to this maximum amount allowed by law.
A. $250,000
B. $250,000,000
C. $2,500
Answer (2)
The FDIC insures deposits up to $250,000 per depositor, per bank. This insurance provides protection for customers in case of bank failures. Therefore, the correct answer is $250,000.
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The question requires identifying the maximum deposit amount insured by the FDIC.
The FDIC insures deposits up to $250,000 per depositor, per insured bank.
Therefore, the correct answer is $250 , 000 .
Explanation
Problem Analysis The question asks us to identify the maximum deposit amount that is insured by the FDIC (Federal Deposit Insurance Corporation). We are given three options:
a. $250,000 b. $250,000,000 c. $2,500
Understanding FDIC The FDIC is a U.S. government agency that protects depositors against the loss of their insured deposits if an FDIC-insured bank or savings association fails.
Identifying the Correct Amount The standard insurance amount is $250,000 per depositor, per insured bank or savings association. This means that if a person has multiple accounts at the same bank, the accounts are insured up to a total of $250,000.
Determining the Answer Based on the information above, the correct answer is $250,000.
Final Answer Therefore, the FDIC insures deposits up to $250,000.
Examples
Imagine you're saving money for college or a down payment on a house. Knowing that your deposits are insured by the FDIC up to $250,000 gives you peace of mind. This means that even if your bank were to fail, the government guarantees that you won't lose your savings, up to that limit. It's like having a safety net for your hard-earned money, ensuring financial stability and confidence in the banking system.
