Because of FDIC insurance, a depositor’s $1,000,000 would be safe if h

QUESTION

Because of FDIC insurance, a depositor’s $1,000,000 would be safe if he or she were to have it evenly deposited among four banks.

Indicate whether the statement is true or false.

ANSWER

Answer: TRUE
Explanation: Because the SAIF, via the SDIC, insures up to $250,000 per depositor per bank, $1,000,000 divided up evenly in four banks would all be insured.