Where does the FDIC's reserve fund come from? a. The FDIC has access to federal tax revenue. b. If an insured bank fails, the FDIC keeps the money at that bank that is beyond the insured limit. c.A certain amount of money goes directly from the Treasury to the FDIC's reserve fund. d. Insured banks pay a premium on the money insured.

Question

Where does the FDIC's reserve fund come from? a. The FDIC has access to federal tax revenue. b. If an insured bank fails, the FDIC keeps the money at that bank that is beyond the insured limit. c.A certain amount of money goes directly from the Treasury to the FDIC's reserve fund. d. Insured banks pay a premium on the money insured.

Answer 1

d. Insured banks pay a premium on the money insured.

Answer 2

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created to maintain stability and public confidence in the nation's financial system. To fund its reserve, the FDIC collects insurance premiums from banks and savings associations that it insures. These insured banks pay a premium on the insured money, which constitutes the primary source of the FDIC's reserve fund. This reserve is used to cover insured deposits in the rare event of a bank failure.

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