161
QuizMultiple Choice

Home Ownership — Cumulative exam

Question 161 • Financial Math - MA2007

Where does the FDIC’s reserve fund come from?

Answer
A
The FDIC has access to federal tax revenue.
B
If an insured bank fails, the FDIC keeps the money at that bank that is beyond the insured limit.
C
A certain amount of money goes directly from the Treasury to the FDIC’s reserve fund.
D
Insured banks pay a premium on the money insured.

Explanation

The FDIC’s Deposit Insurance Fund is primarily financed by premiums paid by insured banks. These premiums help build the fund that the FDIC uses to protect deposits when an insured bank fails. Therefore, the correct choice is “Insured banks pay a premium on the money insured.”

AI-written and checked against the verified answer.

Previous
Next