Chapter 6, Problem 23AA

To determine

To explain:Thestep taken by an individual to make sure that all of the funds are insured by FDIC.

Explanation of Solution

FDIC or Federal Deposit Insurance Corporation is one of the prominent federal agencies that insure funds of the banks and saving institutions. FDIC insures an amount upto $100,000 from each depositor’s funds.

If an individual wants to save $300,000 completely, then that individual can create three separate depositor’s account with $100,000 each and can insure the whole amount. Also, the individual can invest in some special retirement accounts that provide a limit of $250,000.

Economics Concept Introduction

Introduction:

FDIC-FDIC stands for Federal Deposit Insurance Corporation. FDIC protects funds of saving accounts, market deposit accounts, certificate of deposits and also the funds that are present in regular checking accounts.