Banking Practice Exam

Question: 1 / 400

The Federal Deposit Insurance Reform Act of 2005 created which of the following?

Bank Insurance Fund

Deposit Insurance Fund

The Federal Deposit Insurance Reform Act of 2005 established the Deposit Insurance Fund, which consolidated the existing insurance funds for banks and thrifts into a single fund overseen by the Federal Deposit Insurance Corporation (FDIC). This reform aimed to improve the efficiency and effectiveness of the deposit insurance system, ensuring that consumers have a safeguard for their deposits in case of bank failures.

The act transitioned away from multiple funds with separate accounting for banks and thrifts, promoting a more streamlined approach to deposit insurance. It unified the insurance structure, allowing for better risk assessment and management across insured institutions. By creating the Deposit Insurance Fund, the act enhances consumer confidence in the banking system and supports financial stability.

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Savings Association Insurance Fund

National Credit Union Shares Insurance Fund

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