Government Agencies

If the FDIC has a $59.5 billion insurance fund and must use 5.6% of it to cover several failed banks, approximately how much money is left in the fund? a. $56.17 billion b. $62.83 billion c. $66.16 billion d. $3,332 million

A

In 2007, the FDIC's insurance limit was $100,000 per person per bank. Approximately 59% of Mark's deposits were insured by the FDIC. Which of the following is a possible setup for Mark's deposits? a. A $50,000 savings account and $31,000 money market account at Bank G; a $71,000 money market account, $109,000 CD, and $39,000 checking account at Bank H; a $55,000 checking account, $84,000 savings account, and $38,000 CD at Bank I b. A $109,000 savings account, $124,000 checking account, and $36,000 money market account at Bank G; a $52,000 CD and $86,000 money market account at Bank H; a $79,000 checking account, $42,000 savings account, and $88,000 CD at Bank I c. A $107,000 money market account and $150,000 savings account at Bank G; a $22,000 checking account, $31,000 savings account, and $40,000 CD at Bank H; a $70,000 CD, $47,000 money market account, and $59,000 savings account at Bank I d. A $28,000 checking account and $30,000 CD at Bank G; a $77,000 savings account, $60,000 money market account, and $28,000 CD at Bank H; a $64,000 checking account, $92,000 CD, and $112,000 money market account at Bank I

A

Which of the following statements about the NCUA is correct? a. The NCUA is similar to the FDIC, but it insures credit unions instead of banks. b. The NCUA is an independent coalition of credit unions that works to protect investors. c. The NCUA is the branch of the FDIC that insures credit unions. d. The NCUA controls the amount of money banks have available to lend out.

A

n 2007, the FDIC's insurance limit was $100,000 per person per bank. If Sam had a $150,000 savings account and $80,000 checking account at Bank J, a $95,000 money market account at Bank K, and a $200,000 savings account at Bank L, how much of Sam's money was FDIC insured? a. $295,000 b. $300,000 c. $375,000 d. $525,000

A

If the NCUA pays $1.92 billion to cover several failed credit unions, and doing so drains its reserve fund by 8.42%, approximately how much was in the fund to begin with? a. $24.7 billion b. $22.8 billion c. $20.9 billion d. $19.0 billion

B

Which of the following are advantages of certificates of deposit (CDs) over savings accounts? I. CDs are more readily accessible than savings accounts. II. CDs offer greater interest rates than savings accounts. III. CDs have greater FDIC backing than savings accounts. a. I and II b. II only c. I and III d. none of these

B

Why does the FDIC place a limit on the amount of money it will insure? a. The FDIC has only limited reserves. b. Limiting the amount of money insured encourages people with a large amount of money to spread their money out among different banks, which stimulates the economy. c. The FDIC believes that insuring too much money encourages reckless investing. d. The limit prevents the money used to replace lost deposits from being taxed

B

If the FDIC charges Bank D 6.1 cents per 100 dollars insured, how much must Bank D pay to insure $7.3 million in deposits? a. $4,4530,000 b. $445,300 c. $4,453 d. $445.30

C

If the NCUA charges 6.3 cents per 100 dollars insured and Credit Union L pays $8,445 in NCUA insurance premiums, approximately how much is in Credit Union L's insured deposits? a. $1.2 million b. $5.3 million c. $13.4 million d. $20.6 million

C

What kind of financial institutions does the Office of Thrift Supervision oversee? a. Credit unions and local banks b. The stock market c. Savings and loan institutions d. Check clearinghouses

C

Which of the following government agencies does not regulate banking or financial markets? a. The NCUA b. The Federal Reserve c. The FCC d. The OCC

C

Which of the following is protected by the FDIC? a. Deposits lost to identity fraud b. Stock investments c. Money market accounts d. Annuities

C

If the FDIC has an insurance fund of $67.8 billion and must use 7.6% of it to cover several failed banks, approximately how much money is left in the fund? a. $5,153 million b. $57.49 billion c. $72.95 billion d. $62.65 billion

D

If the NCUA charges 3.3 cents per 100 dollars insured and Credit Union M pays $5,995 in NCUA insurance premiums, approximately how much is in Credit Union M's insured deposits? a. $15.5 million b. $1.9 million c. $19.8 million d. $18.2 million

D

If the NCUA pays $1.36 billion to cover several failed credit unions, and doing so drains its reserve fund by 5.18%, approximately how much was in the fund to begin with? a. $70.1 billion b. $24.9 billion c. $27.7 billion d. $26.3 billion

D

In 2007, the FDIC's insurance limit was $100,000 per person per bank. Approximately 62% of Gil's deposits were insured by the FDIC. Which of the following was a possible setup for Gil's deposits? a. A $13,000 money market account at Bank T; a $31,000 CD, $44,000 savings account, and $16,000 checking account at Bank U; a $70,000 CD and $28,000 money market account at Bank V b. A $54,000 checking account and $84,000 savings account at Bank T; a $28,000 money market account, $27,000 savings account, and $20,000 CD at Bank U; a $130,000 CD at bank V c. A $60,000 money market account and $70,000 savings account at Bank T; a $40,000 checking account and $92,000 savings account at Bank U; a $45,000 CD and $75,000 checking acount at Bank V d. A $108,000 savings account and $46,000 CD at Bank T; a $36,000 money market account and $38,000 CD at Bank U; a $63,000 checking account, $80,000 savings account, and $70,000 money market account at Bank V

D

What does "FDIC" stand for? a. Financial Deposit Institute of Congress b. Financial Deposit Insurance Commission c. Federal Deposit Investigation Council d. Federal Deposit Insurance Corporation

D

Which of the following government agencies regulates financial markets? a. OSHA b. The IRS c. The FAA d. The OTS

D(?)