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Which bodies insure savings products such as bank and credit union accounts?
AThe FDIC and the National Credit Union Administration
BThe SEC together with the stock exchanges
CThe Federal Reserve and the Treasury alone
DState insurance commissioners of each state
Answer & Solution
Correct answer: A. The FDIC and the National Credit Union Administration
1. Savings products carry federal insurance that investments lack.
2. They are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.
3. The tradeoff for that security is a low wage on your money.
_Source: "Saving and Investing: A Roadmap to Your Financial Security" (US SEC, public domain), section Investing_
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