5
QuizMultiple Choice

Financial Institutions and Banking — Quiz

Question 5 • Personal Finance

How does the Federal Deposit Insurance Company (FDIC) protect bank customers?

Answer
A
If customers can’t pay their bills, the FDIC provides them with short-term loans.
B
If a bank has a financial crisis, the FDIC safeguards its customers’ accounts.
C
If a bank can’t supply checkbooks, the FDIC can send them to customers.
D
If customers lose their credit cards, the FDIC supplies them with replacements.

Explanation

The FDIC insures deposits at participating banks, protecting customers’ account funds if a bank fails. It does not provide personal loans, checkbooks, or replacement credit cards. Therefore, the correct choice is B: if a bank has a financial crisis, the FDIC safeguards its customers’ accounts.

AI-written and checked against the verified answer.

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