ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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banks do not fail
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depositors do not lose money if a bank fails
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banks charge a fair amount of interest on loans
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the government has enough gold to cover its expenses
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Detailed explanation-1: -Deposit insurance is one of the significant benefits of having an account at an FDIC-insured bank-it’s how the FDIC protects your money in the unlikely event of a bank failure. The standard insurance amount is $250, 000 per depositor, per insured bank, for each account ownership category.
Detailed explanation-2: -When a bank fails, the Federal Deposit Insurance Corporation (FDIC) will arrange the sale of the bank customer’s assets to a healthy bank, or, less commonly, the FDIC will pay the bank deposits back directly. Between 2001 and 2022, 561 banks failed, according to the FDIC.
Detailed explanation-3: -The FDIC protects depositors of insured banks located in the United States against the loss of their deposits if an insured bank fails. Any person or entity can have FDIC insurance coverage in an insured bank. A person does not have to be a U.S. citizen or resident to have his or her deposits insured by the FDIC.
Detailed explanation-4: -Deposit Insurance If a commercial bank fails, the FDIC guarantees to reimburse depositors up to $250, 000 (raised from $100, 000 during the financial crisis of 2008) per insured bank, for each account ownership category.
Detailed explanation-5: -What does FDIC do to ensure banks protect my deposits? The FDIC directly examines and supervises nearly 3, 500 financial institutions. Our examiners check for operational safety and soundness of more than half of the institutions in the U.S. banking system.