Final answer:
Checking account deposits are protected by the FDIC, which insures each depositor's account up to $250,000 in case of bank failure. Corporate bonds, stocks, and real estate investments are not covered as they are investment products and not traditional deposit accounts.
Step-by-step explanation:
You asked which of the following are protected by the Federal Deposit Insurance Corporation (FDIC): corporate bonds, stocks, checking account deposits, or real estate investments. The FDIC provides deposit insurance to protect depositors and maintain confidence in the U.S. banking system. It guarantees that if a bank fails, each depositor will receive up to $250,000 per insured account. Therefore, among the choices given, c) Checking account deposits are protected by the FDIC.
It's important to note that stocks, corporate bonds, and real estate investments are not protected by the FDIC because they are investment products, which carry risk and are not considered deposits. The FDIC's insurance is specifically designed to cover traditional deposit accounts such as savings accounts, checking accounts, and certificates of deposit (CDs).
Since the United States enacted deposit insurance in the 1930s, no depositor has lost any of their insured deposits, and the occurrence of bank runs at insured banks has become a thing of the past. This insurance has been instrumental in maintaining trust in the banking system. The bottom line is that bank accounts have low risk with a low rate of return but offer high liquidity and security through the FDIC.