ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -(WVLT)-For more than 80 years, the Federal Depository Insurance Corporation has been protecting your money whether you knew it or not. You may have noticed signs around your bank that said “FDIC Insured, ” reminding customers that up to $250, 000 of their deposits is insured in the unlikely event of the bank closing.

Detailed explanation-2: -There’s a much greater chance that you make money by keeping your extra cash in a bank account, especially if you opt for a savings account. These accounts enable you to earn interest on your money in the form of an annual percentage yield (APY).

Detailed explanation-3: -If your money is currently in a deposit account, then it is relatively safe because if a bank does go out of business the depositors are first in line to get paid, followed by bondholders and then shareholders. A deposit account, therefore, should be a safer bet than investing in bank bonds, for example.

Detailed explanation-4: -“U.S. Treasury securities, such as Treasury bills, notes and bonds, are considered to be among the safest investments because they are backed by the full faith and credit of the U.S. government, ” Boothe said.