Elijah is concerned that his bank is making poor financial decisions and worries that his $1,200 deposited in savings will be lost if the bank were to fail. As long as his bank meets the necessary requirements, which of the following protects Elijah against this potential loss?(1 point)

Question

Elijah is concerned that his bank is making poor financial decisions and worries that his  $1,200  deposited in savings will be lost if the bank were to fail. As long as his bank meets the necessary requirements, which of the following protects Elijah against this potential loss?(1 point)
Responses

Glass-Steagall
Glass-Steagall

Home Owners' Loan Act
Home Owners' Loan Act

fractional-reserve banking
fractional-reserve banking

Federal Deposit Insurance Corporation

GPT-4o mini · Answer

The correct answer is **Federal Deposit Insurance Corporation (FDIC)**. The FDIC protects depositors by insuring their deposits in member banks up to a certain limit, which helps safeguard against losses in the event of a bank failure.