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

Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation

fractional-reserve banking
fractional-reserve banking

Glass-Steagall
Glass-Steagall

Home Owners' Loan Act
Home Owners' Loan Act
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Answer 1

Federal Deposit Insurance Corporation is the correct answer. This organization insures deposits of up to $250,000 per depositor per bank. This means that in the event of a bank failure, Elijah's $1,200 deposit would be protected up to the insurance limit.