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26 December, 06:32

What is the purpose of deposit insurance?

to protect financial institutions from depositors who withdraw their money and close

their accounts on short notice

to protect depositors from unfair or overly expensive fees

to protect the government from having to bail out financial institutions that behave

illegally or irresponsibly with deposits

to protect the money deposited in a financial institution in case that institution goes out

of business

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Answers (2)
  1. 26 December, 07:32
    0
    to protect customer deposits up to a certain amount in case the financial institution goes out of business

    Explanation:

    I took the test
  2. 26 December, 08:26
    0
    The correct answer is to protect the money deposited in a financial institution in case the institution goes out of business.

    Banks are required to have deposit insurance for the deposits that are made in their banks in case they go out of business. The FDIC is the federal deposit insurance company that covers bank in the United States. in most cases, a person has up to $250,000 in coverage for money that they have deposited in a bank.
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