Utah Financial Literacy State Practice Test 2025 - Free Financial Literacy Practice Questions and Study Guide

The Federal Deposit Insurance Corporation (FDIC) provides insurance coverage for deposits in member banks to protect depositors in the event of a bank failure. The current coverage limit is $250,000 per depositor, per insured bank, for each account ownership category. This coverage includes various types of accounts, such as savings accounts, checking accounts, and certificates of deposit. It is designed to enhance public confidence in the banking system by ensuring that depositors do not lose their insured deposits, even if a bank goes under.

The limits are periodically reviewed, and it's essential for depositors to be aware of these limits to make informed decisions about their banking and investment choices. Choices that indicate coverage amounts lower or higher than $250,000 do not reflect the current regulations set by the FDIC, which maintains the amount at $250,000 to provide adequate coverage for the majority of individual depositors.