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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

Glass-Steagall
Glass-Steagall

fractional-reserve banking
fractional-reserve banking

Federal Deposit Insurance Corporation

1 answer

Elijah's concern about the safety of his deposits in the bank is addressed by the Federal Deposit Insurance Corporation (FDIC). The FDIC provides insurance for deposits made at member banks, protecting depositors against the loss of their money if the bank fails, up to a certain limit (currently $250,000 per depositor, per insured bank).

So, the correct answer is:

Federal Deposit Insurance Corporation