True or false: deposit insurance

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   The cover applies separately to your deposits in each different bank.

2. Statement is true

   No

   Statement

   A depositor pays the deposit insurance premium out of their own interest.

3. Statement is true

   No

   Statement

   A bank may choose to opt out of the deposit insurance scheme.

4. Statement is true

   Yes

   Statement

   Deposits kept in different branches of one bank are added together for the cover.

Instructions

Decide whether each statement about deposit insurance is true or false.

Explanation