ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Millions
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Billions
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none
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$500, 000
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Detailed explanation-1: -Designed to instill confidence in the American banking system, the FDIC proudly proclaims on its website that no depositor “has ever lost a penny of insured deposits since the FDIC was created in 1933.”
Detailed explanation-2: -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-3: -How did this come to a head? On Wednesday SVB said it had sold a large chunk of its securities, worth $21 billion at the time of sale, at a loss of about $1.8 billion after tax.
Detailed explanation-4: -The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank.
Detailed explanation-5: -From 2008 to 2015, more than 500 federally insured banks failed.