You open a new bank account at Eastside Savings. You see FDIC stickers around the bank, and the teller specifically mentions that Eastside Savings is FDIC insured. A few months later, you hear on the radio that Eastside Savings is struggling to stay in business. Your savings balance is $500. What would happen to that money if Eastside Savings failed?

BUDGETING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

You open a new bank account at Eastside Savings. You see FDIC stickers around the bank, and the teller specifically mentions that Eastside Savings is “FDIC insured". A few months later, you hear on the radio that Eastside Savings is struggling to stay in business. Your savings balance is $500. What would happen to that money if Eastside Savings failed?

A	You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250, 000.
B	You could lose $250 since FDIC insurance only covers 50% of the money you have deposited.
C	You would lose all of your money.
D	You would receive $250, 000 since FDIC insurance provides each account at the bank with $250, 000 regardless of how much they have deposited.

Explanation:

Detailed explanation-1: -What would happen to that money if Eastside Savings failed? You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250, 000.

Detailed explanation-2: -You write paper checks, withdraw money from an automated teller machine (ATM), or pay with a check card.

Detailed explanation-3: -Which of the following is an effective strategy for personal saving? Save a certain percentage of your paycheck each month and deposit it directly into your savings account when you get paid.

Detailed explanation-4: -Higher APY than a checking account: Savings accounts generally offer higher interest rates than checking accounts. That means that banks pay interest into your account, usually monthly. You’ll continue to earn interest on any interest-bearing savings account for as long as the money stays in the account.

Detailed explanation-5: -Interest rate. Minimum cash balance. Presence or network of the bank/financial institution. Service charges / ancillary fees. Debit-card deals. Doorstep banking facilities. Disclaimer: Copyright Kotak Mahindra Bank Ltd.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

BUDGETING