ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Insured
|
|
|
Not Insured
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Unfortunately, mutual funds-like investments in the stock market-are not insured by the Federal Deposit Insurance Corporation (FDIC) because they do not qualify as financial deposits.
Detailed explanation-2: -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-3: -Many people use investment products to help buy a home, send children to college, or build a retirement nest egg. But unlike traditional checking or savings accounts, non-deposit investment products are not insured by the FDIC, even if they were purchased from an FDIC-insured bank.
Detailed explanation-4: -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.