Question

Both commercial bank and savings bank accounts are insured by the FDIC through a fund called the

a) Bank Insurance Fund (BIF)
b) Savings Association Insurance Fund (SAIF)
c) Deposit Insurance Fund (DIF)
d) Financial Security Fund (FSF)

Answer 1

Accounts at both commercial and savings banks are protected by the FDIC's Deposit Insurance Fund (DIF),

ensuring up to $250,000 per depositor in case of bank failure.

This system has provided security to individual savings and underpinned the stability of the banking system since the 1930s.

Step-by-step explanation:

Deposit accounts at both commercial banks and savings banks are insured by the FDIC through a fund known as the Deposit Insurance Fund (DIF).

FDIC bank examiners assess banks' balance sheets and determine risk levels. The FDIC's insurance guarantees that, in the event of a bank failure, depositors will receive up to $250,000 per account, thus providing stability and security to depositors and preventing bank runs.

This comprehensive fund ensures that individuals' savings are safe up to the insured amount, which has contributed to a solid banking system since the 1930s.

Both commercial bank and savings bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC) through a fund called the Deposit Insurance Fund (DIF).

The FDIC provides deposit insurance for thousands of banks, ensuring that depositors will receive up to $250,000 of their money in each account even if the bank fails.

This insurance helps protect the savings of individuals and promotes confidence in the banking system.