Florida Teacher Certification Examinations (FTCE) Subject Area Practice Test

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Prepare for the FTCE Subject Area Test. Study with flashcards and multiple choice questions, each offering hints and explanations. Get ready for your exam!

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Which institution is responsible for insuring depositors' money?

Federal Depository Insurance Corporation
Federal Reserve
Consumer Financial Protection Bureau
Bank of America

The correct answer is: Federal Depository Insurance Corporation

The Federal Depository Insurance Corporation (FDIC) is the institution responsible for insuring depositors' money in the United States. It was established in 1933 to provide stability and confidence in the American banking system by protecting depositors against losses due to bank failures. The FDIC insures deposits in member banks, up to a standard amount, ensuring that even if a bank fails, depositors can recover their insured funds. In contrast, the Federal Reserve serves as the central bank of the United States and focuses primarily on monetary policy, regulating banks, and providing financial services, rather than directly insuring deposits. The Consumer Financial Protection Bureau (CFPB) is dedicated to protecting consumers in the financial sector, but it does not provide deposit insurance. Bank of America is a financial institution that offers banking services, but it is not an insurer of deposits; rather, it is subject to FDIC regulations and protections for its depositors.