ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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insures all demand deposits without limit.
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insures all demand deposits up to $250, 000.
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insures all demand deposits up to $25, 000.
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has eliminated bank failures.
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Detailed explanation-1: -The standard deposit insurance amount is $250, 000 per depositor, per insured bank, for each account ownership category. The FDIC insures deposits that a person holds in one insured bank separately from any deposits that the person owns in another separately chartered insured bank.
Detailed explanation-2: -The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for coverage over $250, 000 if they have funds in different ownership categories and all FDIC requirements are met.
Detailed explanation-3: -October 2008. During the height of panic brought on by the Great Recession, the Emergency Economic Stabilization Act (EESA) was passed which temporarily raised the FDIC coverage limit to $250, 000.
Detailed explanation-4: -The standard insurance amount is $250, 000 per depositor, per insured bank, for each account ownership category. And you don’t have to purchase deposit insurance. If you open a deposit account in an FDIC-insured bank, you are automatically covered.