Which institutions are insured up to $250,000 by the FDIC and NCUA?

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Study for the General Financial Literacy State Test. Prepare with flashcards and multiple-choice questions, each with hints and explanations. Enhance your financial expertise for success!

Multiple Choice

Which institutions are insured up to $250,000 by the FDIC and NCUA?

Explanation:
Deposits are protected up to 250,000 by government-backed insurance at banks and credit unions. The FDIC handles banks, and the NCUA handles credit unions, and they insure accounts like checking, savings, money market, and certificates of deposit. This protection means if the institution fails, your covered deposits are reimbursed up to that limit. Investments such as stocks, bonds, or mutual funds aren’t insured by this deposit insurance. So the institutions that are insured up to 250,000 are banks and credit unions.

Deposits are protected up to 250,000 by government-backed insurance at banks and credit unions. The FDIC handles banks, and the NCUA handles credit unions, and they insure accounts like checking, savings, money market, and certificates of deposit. This protection means if the institution fails, your covered deposits are reimbursed up to that limit. Investments such as stocks, bonds, or mutual funds aren’t insured by this deposit insurance. So the institutions that are insured up to 250,000 are banks and credit unions.

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