Question 2 of 10 A savings account that is insured by the FDIC/NCUA means it can be used only in an emergency O the money is protected by the government the account is invested in government bonds Oit has one of the highest interest rates around Submit
Question 2 of 10 A savings account that is insured by the FDIC/NCUA means it can be used only in an emergency O the money is protected by the government the account is invested in government bonds Oit has one of the highest interest rates around Submit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A savings account that is insured by the FDIC/NCUA means
Transcribed Image Text:**Question 2 of 10**
**A savings account that is insured by the FDIC/NCUA means _____ .**
1. ⃝ it can be used only in an emergency
2. ⃝ the money is protected by the government
3. ⃝ the account is invested in government bonds
4. ⃝ it has one of the highest interest rates around
**Submit**
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**Explanation:**
This question is part of a quiz or assessment to test understanding of financial literacy topics, specifically related to the protection of savings accounts by federal insurance.
- **FDIC (Federal Deposit Insurance Corporation)** insures bank deposits, and **NCUA (National Credit Union Administration)** insures credit union deposits.
- They safeguard deposit accounts such as savings accounts, checking accounts, and CDs (certificates of deposit), ensuring that depositors are protected up to the insurance limit in case the financial institution fails.
The correct answer should typically be marked as, "the money is protected by the government." This means that deposits up to a certain amount (e.g., $250,000 per depositor) are insured and guaranteed to be returned to the account holder, even if the bank or credit union fails.
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