3. Deposit insurance programs What are federal deposit insurance programs? The presence of federal deposit insurance on your accounts is often not readlly apparent; sometimes it's only observable by the seal posted on a bank's door or by an image of the seal on the bank's website. However, the presence or absence of deposit insurance on your bank account can have a critical impact on the safety of your money. Suppose that walking into your fingancial institution, you see the following sign on the door: You are walking into What institutions are protected by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Share Insurance Fund (NCUsIF)? The FDIC oversees and manages two separate insurance funds that apply to banks and savings associations. These two funds include the Savings Association Insurance Fund (SAIF), which provides coverage for and the Bank Insurance Fund (BIF), which insures deposits in In an arrangement thot seems inconsistent, mutual savings banks are insured by the In contrast, funds held in federally chartered credit unions are insured by the You are walking into What institutions are protected by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Share Insurance Fund (NCUSIF)? The FDIC oversees and manages two separate insurance funds that apply to banks and savings associations. These two funds include the Savings Association Insurance Fund (SAIF), which provides coverage for and the Bank Insurance Fund (BIF), which insures deposits in In an arrangement that seems inconsistent, mutual savings banks are insured by the In contrast, funds held in federally chartered credit unions are insured by the The following scenarios focus on how the presence or absence of deposit insurance deposits affects the depositors' wealth. Suppose that Brian received an inheritance from his grandmother last month. This boosted the normal balance of Brian's savings account to its current balance of $378,500. Brian is the sole owner of the account. The maximum amount of coverage that would be provided if his bank failed tomorrow is Suppose that Edison and Hilary called you to help them settie a disagreement that they had last night. Edison argued that FDIC and NCUSIF deposit insurance will cover mutual fund investments as well as insurance policies in the event the firms fall. Hilary argued that the programs would not protect these assets, Who is right: Edison or Hilary