California Real Estate Practice Exam

After 1989, who insured deposits in all federally chartered banks?

1. The Treasury Department

2. The Federal Reserve

3. The FDIC

4. SIPC

The correct answer is: The FDIC

In 1989, the Financial Institutions Reform, Recovery, and Enforcement Act was passed, which insured deposits in all federally chartered banks. This responsibility was given to the Federal Deposit Insurance Corporation (FDIC), not the other options listed. The Treasury Department is responsible for managing the nation's finances, while the Federal Reserve is responsible for monetary policy. The Securities Investor Protection Corporation (SIPC) is responsible for protecting customers' assets in the case of a brokerage firm failing, not bank deposits. Therefore, the FDIC is the only option that aligns with the given timeframe and responsibility.