Question

Where does the FDIC’s reserve fund come from?

a.
The FDIC has access to federal tax revenue.
b.
If an insured bank fails, the FDIC keeps the money at that bank that is beyond the insured limit.
c.
A certain amount of money goes directly from the Treasury to the FDIC’s reserve fund.
d.
Insured banks pay a premium on the money insured.

Answer 1

The FDIC's reserve fund comes from insured banks paying a premium on the money they insure.

Step-by-step explanation:

The FDIC's reserve fund comes from insured banks paying a premium on the money they insure. The insurance premium is based on the bank's level of deposits and adjusted according to the riskiness of the bank's financial situation. This insurance premium is the main source of funding for the FDIC's reserve fund.

Answer 2

d. Insured banks pay a premium on the money insured. The FDIC's reserve fund comes from premiums paid by insured banks. The premiums are paid based on the amount of deposits held by the bank and the level of risk the bank poses to the FDIC's insurance fund.