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

Home Owners' Loan Act
Home Owners' Loan Act

Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation

fractional-reserve banking
fractional-reserve banking

Glass-Steagall
Glass-Steagall

GPT-4o mini · Answer

Elijah’s concern about the safety of his $1,200 deposit can be addressed by the Federal Deposit Insurance Corporation (FDIC). The FDIC provides insurance on deposits in member banks, protecting depositors in case of bank failures. Therefore, the correct answer is:

Federal Deposit Insurance Corporation