Asked by thomas suggs on May 12, 2024
Verified
Deposit insurance means that,in the event the bank fails,depositors are paid in full by the FDIC,up to $250,000.
Deposit Insurance
A government guarantee to depositors in banks and other financial institutions, ensuring the safety of their deposits up to a certain limit, in case the institution fails.
FDIC
Federal Deposit Insurance Corporation; a U.S. government agency that insures deposits at banks and thrift institutions, providing financial stability and protecting depositors.
- Acquire knowledge about the considerations taken by banks during loan evaluations and the value of deposit insurance.
Verified Answer
AF
Abigail FrancoisMay 18, 2024
Final Answer :
True
Explanation :
Deposit insurance, provided by the Federal Deposit Insurance Corporation (FDIC) in the United States, guarantees that depositors will be reimbursed up to $250,000 per depositor, per insured bank, for each account ownership category, in the event of a bank failure.
Learning Objectives
- Acquire knowledge about the considerations taken by banks during loan evaluations and the value of deposit insurance.