QuestionAugust 18, 2025

True or False? As long as your money is in an FDIC-insured account, it is safe even if the bank goes out of business. True False

True or False? As long as your money is in an FDIC-insured account, it is safe even if the bank goes out of business. True False
True or False? As long as your money is in an FDIC-insured account, it is
safe even if the bank goes out of business.
True
False

Solution
4.0(250 votes)

Answer

True Explanation 1. Understand FDIC Insurance The Federal Deposit Insurance Corporation (FDIC) insures deposits in member banks up to a certain limit, typically 250,000 per depositor, per insured bank, for each account ownership category. 2. Assess Safety of Funds If a bank fails, the FDIC protects depositors by transferring insured funds to another institution or directly reimbursing them, ensuring safety within the insurance limits.

Explanation

1. Understand FDIC Insurance<br /> The Federal Deposit Insurance Corporation (FDIC) insures deposits in member banks up to a certain limit, typically $250,000 per depositor, per insured bank, for each account ownership category.<br /><br />2. Assess Safety of Funds<br /> If a bank fails, the FDIC protects depositors by transferring insured funds to another institution or directly reimbursing them, ensuring safety within the insurance limits.
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