What is the role of the FDIC and NCUA?

• A. To regulate mortgage rates
• B. To set interest rates for loans
• C. To provide free financial planning services
• D. To insure deposits in banks and credit unions up to $250,000.

Answer: (D)

Deposit insurance is the main idea here: it protects your money if a bank or credit union fails. The FDIC covers deposits in most banks and savings institutions, insuring up to $250,000 per depositor at each insured bank. The NCUA does the same for credit unions. This protection applies to typical deposit accounts like checking, savings, money market, and certificates of deposit, and it usually covers each depositor up to the limit at each institution. It does not insure investments like stocks, bonds, or mutual funds, even if sold by an insured institution, and it doesn't set loan rates or provide free financial planning. Mortgage rates and other loan terms are determined by lenders and market conditions, not by these agencies.