ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Insured
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Not Insured
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Either A or B
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None of the above
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Detailed explanation-1: -Yes. Like other deposit accounts, money market accounts are insured by the FDIC and NCUA up to $250, 000 for each account holder. Money market mutual funds, however, are not federally insured. These are offered by brokers and other entities that are not banks or credit unions.
Detailed explanation-2: -Insurance. Like your checking and savings account, a money market account is insured by the FDIC (Federal Deposit Insurance Corporation) or the NCUA (National Credit Union Association) up to $250, 000 per depositor, per ownership category.
Detailed explanation-3: -While bank balances are insured by the Federal Deposit Insurance Corporation (FDIC), investments held 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.
Detailed explanation-4: -Some of the accounts that FDIC does not cover include stocks, bonds, annuities, mutual funds, life insurance policies, safe deposit boxes, U.S. treasury bills, and municipal investments. Moreover, only your account balance and compound interest on it will be insured, provided the balance remains under the limit.
Detailed explanation-5: -Checking accounts. Negotiable Order of Withdrawal (NOW) accounts. Savings accounts. Money market deposit accounts (MMDA) Time deposits such as certificates of deposit (CDs) Cashier’s checks, money orders, and other official items issued by a bank. 13-Sept-2022