Government Agencies

Question 1

Mary has a large sum of money to deposit, but since she has heard many stories from her grandmother about the Great Depression, when many banks lost their customers’ deposits, she is worried that the bank might not keep her money safe. Give Mary some recommendations about what she can do to make sure that her money stays protected.

Revolt · Accepted Answer

Mary should use an FDIC-insured bank, keep deposits within the FDIC coverage limit per depositor and bank, and divide larger amounts among separately insured banks or ownership categories. She should confirm the bank’s insurance status and choose insured deposit accounts such as savings accounts or CDs.

Question 2

If the FDIC charges Bank D 6.1 cents per 100 dollars insured, how much must Bank D pay to insure $7.3 million in deposits? a. $4,453,000 b. $445,300 c. $4,453 d. $445.30 Please select the best answer from the choices provided

Revolt · Accepted Answer

C

Question 3

If the NCUA pays $1.36 billion to cover several failed credit unions, and doing so drains its reserve fund by 5.18%, approximately how much was in the fund to begin with?a.$70.1 billionb.$24.9 billionc.$27.7 billiond.$26.3 billion

Revolt · Accepted Answer

D

Question 4

If the FDIC has a $59.5 billion insurance fund and must use 5.6% of it to cover several failed banks, approximately how much money is left in the fund?a.$56.17 billionb.$62.83 billionc.$66.16 billiond.$3,332 million

Revolt · Accepted Answer

A

Question 5

In 2007, the FDIC’s insurance limit was $100,000 per person per bank. At that time, if Kit had three separate $50,000 CDs at Bank R, a $60,000 checking account and a $140,000 money market account at Bank S, and an $80,000 savings account at Bank T, how much of Kit’s money was FDIC insured? a. $230,000 b. $280,000 c. $300,000 d. $390,000 Please select the best answer from the choices provided

Revolt · Accepted Answer

B

Question 6

Which of the following is protected by the FDIC?a.Deposits lost to identity fraudb.Stock investmentsc.Money market accountsd.Annuities

Revolt · Accepted Answer

C

Question 7

What kind of financial institutions does the Office of Thrift Supervision oversee?a.Credit unions and local banksb.The stock marketc.Savings and loan institutionsd.Check clearinghouses

Revolt · Accepted Answer

C

Question 8

In 2007, the FDIC’s insurance limit was $100,000 per person per bank. Approximately 59% of Mark’s deposits were insured by the FDIC. Which of the following is a possible setup for Mark’s deposits? a. A $50,000 savings account and $31,000 money market account at Bank G; a $71,000 money market account, $109,000 CD, and $39,000 checking account at Bank H; a $55,000 checking account, $84,000 savings account, and $38,000 CD at Bank I b. A $109,000 savings account, $124,000 checking account, and $36,000 money market account at Bank G; a $52,000 CD and $86,000 money market account at Bank H; a $79,000 checking account, $42,000 savings account, and $88,000 CD at Bank I c. A $107,000 money market account and $150,000 savings account at Bank G; a $22,000 checking account, $31,000 savings account, and $40,000 CD at Bank H; a $70,000 CD, $47,000 money market account, and $59,000 savings account at Bank I d. A $28,000 checking account and $30,000 CD at Bank G; a $77,000 savings account, $60,000 money market account, and $28,000 CD at Bank H; a $64,000 checking account, $92,000 CD, and $112,000 money market account at Bank I Please select the best answer from the choices provided

Revolt · Accepted Answer

A

Question 9

Which of the following government agencies regulates financial markets?a.OSHAb.The IRSc.The FAAd.The OTS

Revolt · Accepted Answer

D

Question 10

If the NCUA charges 3.3 cents per 100 dollars insured and Credit Union M pays $5,995 in NCUA insurance premiums, approximately how much is in Credit Union M’s insured deposits?a.$15.5 millionb.$1.9 millionc.$19.8 milliond.$18.2 million

Revolt · Accepted Answer

D

Government Agencies Answers

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