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: -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-2: -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-3: -The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, municipal securities, or money market funds, even if these investments were bought from an insured bank.
Detailed explanation-4: -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.