BUISENESS MANAGEMENT
RISK MANAGEMENT
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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.
Detailed explanation-2: -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-3: -Basically, all demand-deposit accounts that become general obligations of the bank are covered by the FDIC. The type of accounts that can be FDIC-insured include negotiable orders of withdrawal (NOW), checking, savings, and money market deposit accounts, as well as certificates of deposit (CDs).