ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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investing
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saving
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Either A or B
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None of the above
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Detailed explanation-1: -While bank balances are insured by the FDIC, investments in a brokerage account are covered by the Securities Investor Protection Corporation (SIPC). It protects investors in the unlikely event that their brokerage firm fails. However, certain rules and conditions apply-and investment earnings are not insured.
Detailed explanation-2: -A deposit is money held in a bank account or with another financial institution that requires a transfer from one party to another. A deposit can can also be the amount of money used as security or collateral for delivery of goods or services.
Detailed explanation-3: -A: Yes. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $250, 000 per depositor, per FDIC-insured bank, per ownership category.
Detailed explanation-4: -Examples of uninsured CDs are Yankee CDs, bull CDs, and bear CDs. Most CDs are insured by the FDIC or the NCUA. CDs, along with savings accounts and money market accounts, are savings vehicles that you can invest in at your local bank or credit union.