Question

Mary opened an individual checking account at an FDIC member bank and deposited a check for $600,000. How much of her deposit is protected against loss by the Federal Deposit Insurance Corporation (FDIC)?

A) $100,000
B) $250,000
C) $500,000
D) $600,000

Answer 1

Mary's deposit in the FDIC member bank is insured for up to $250,000. This means that out of her $600,000 deposit, $250,000 is protected by the FDIC, and the remainder is not covered by FDIC insurance.

Step-by-step explanation:

When Mary opened an individual checking account at an FDIC member bank and deposited a check for $600,000, she ensured a portion of her deposit against loss. The Federal Deposit Insurance Corporation (FDIC) protects depositors by insuring their deposits in member banks up to a certain amount. As of the change in 2008, this insurance limit was raised from $100,000 to $250,000.

Therefore, considering the FDIC insurance covers up to $250,000 per depositor, per insured bank, for each account ownership category, the answer to the question is that Mary has $250,000 of her $600,000 deposit protected against loss by the FDIC. The remaining $350,000 of her deposit would not be covered under the FDIC insurance limit and would be at risk if the bank were to fail.