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DP14 - FDIC InsuranceCoverage Questions And Answers Rated 100% Correct!!
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1. A client has three single ownership savings accounts and one joint money market account. Assuming all accounts have balances of $10,000, how does the FDIC calculate the client's insurance coverage for these accounts? A. All four account balances are added together B. All four accounts are se...

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  • November 13, 2024
  • 13
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • dp14 fdic insurancecoverage

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  • DP14 - FDIC InsuranceCoverage
  • DP14 - FDIC InsuranceCoverage

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DP14 - FDIC InsuranceCoverage
1. A client has three single ownership savings accounts and one joint money market
account. Assuming all accounts have balances of $10,000, how does the FDIC
calculate the client's insurance coverage for these accounts?
A. All four account balances are added together
B. All four accounts are separately insured
C. The three single accounts are added together and insured. If the total from the three
single accounts is less than the insurable amount, funds from the joint account can be
added to reach the maximum insurable balance
D. The client's three single accounts are added together and insured, and the client's
share of the joint account is separately insured - ✔️✔️D

1B677235399E4804962FBCFF18756048
Not answered. The correct answer is D. A and B are incorrect because FDIC insurance
coverage of an individual's accounts in any one institution are calculated based on
ownership categories. C is incorrect because the client's share of the joint account
would be insured separately.



2. The FDIC has many roles. Which option describes two capacities the FDIC performs
following a bank failure?
A. As the teller at the bank's drive thru and the underwriter of the bank's loans
B. As the buyer of the failed bank and the notifier of that bank's customers
C. As the closer of safe deposit boxes and the opener of new CD accounts
D. As the insurer of the bank's deposits and the receiver of the failed bank - ✔️✔️D

D8CA390946A24F24ABAA85924F9AC4E3
Not answered. The correct answer is D. A, B, and C are incorrect because when a bank
fails, the FDIC acts as the insurer of the failed bank's deposits and the receiver of the
failed bank.


3. One of the FDIC's most important functions is to insure the deposit accounts of
millions of Americans in all the FDIC-insured financial institutions across the country.
What fund does the FDIC administer?
A. Federal Insurance Fund (FIC)
B. Deposit Insurance Fund (DIF)
C. Insurance Deposit Fund (IDF)
D. Secure Deposit Fund (SDF) - ✔️✔️B

0B233E8C715A4903A92673E6536F3489
Not answered. The correct answer is B. A, C, and D are incorrect because the FDIC
administers the Deposit Insurance Fund (DIF).

, 4. James Johnson has single ownership accounts in two separately chartered financial
institutions. How does FDIC calculate the insurance coverage for James' accounts?
A. Each account is insured separately
B. Accounts are aggregated and the total is insured for up to $250,000
C. The oldest account is insured first
D. The account with the largest balance has the priority for insurance coverage -
✔️✔️A

27644767674F4480BF7282CB424963E1
Not answered. The correct answer is A. B, C, and D are incorrect because accounts
held in separately chartered financial institutions are not added together and are insured
separately.

5. What does that term ''pass-through" deposit insurance coverage mean?
A. The account is opened by individuals who are passing through the area
B. Funds in the account are owned by the principal not the third party who set up the
account
C. Ownership of the funds passes through the account to the bank
D. The FDIC passes the insurance through the account to the FDIC's insurance fund -
✔️✔️B

AB69636ED54D4A768B2B9CF3311EB241
Not answered. The correct answer is B. A, C, and D are incorrect because a pass-
through account is one set up by a third party with funds owned by the principals of the
account.

6. Your marketing department wants to place an advertisement in your branch
promoting a new deposit product. Which statement provides accurate signage
instructions?
A. Signage must contain the ''Member FDIC'' logo
B. Any advertisement for a non-deposit investment product must contain the ''Member
FDIC'' logo
C. Any non-covered product or service must contain the ''Member FDIC'' logo
D. ''Member FDIC'' signs are only required at the financial institution's principal place of
business - ✔️✔️A

19BEE64DE4DD41DEB1D1F09243845C43
Not answered. The correct answer is A. B is incorrect because any advertisement for a
non-deposit investment product may NOT contain this logo. C is incorrect because
advertisements for any non-covered product or service may NOT contain this logo. D is
incorrect because insured depository institutions must display the official ''Member
FDIC'' signs at each station or window where insured deposits are usually and normally
received, both at a depository institution's principal place of business and in all its
branches.

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