CFDIC FINAL EXAM WITH
ANSWERS 100% VERIFIED!! (2026
Edition)
What is the Standard Maximum Deposit Insurance Amount (SMDIA)?
A) $100,000 (Incorrect: This was the limit prior to 2008.)
B) $250,000 (Correct: Made permanent by the Dodd-Frank Act in 2010.)
C) $500,000 (Incorrect: This is not a standard FDIC limit.)
D) $1,000,000 (Incorrect: This is not a standard FDIC limit.)
ANSWER: B
Which act permanently increased the SMDIA to $250,000?
A) The Glass-Steagall Act (Incorrect: This act separated commercial and
investment banking.)
B) The Gramm-Leach-Bliley Act (Incorrect: This act repealed Glass-
Steagall and addressed privacy.)
C) The Dodd-Frank Wall Street Reform Act (Correct: Made the $250,000
limit permanent.)
D) The Sarbanes-Oxley Act (Incorrect: This act addressed corporate
governance and accounting.)
ANSWER: C
How is the FDIC primarily funded?
A) Congressional appropriations (Incorrect: The FDIC does not receive
federal tax funding.)
,B) Assessment on banks and interest on government securities (Correct:
Banks pay premiums into the Deposit Insurance Fund.)
C) Fees from consumer account closures (Incorrect: This is not a primary
funding source.)
D) Borrowing from the Federal Reserve (Incorrect: The FDIC has a credit
facility but is funded by assessments.)
ANSWER: B
Which of the following is NOT insured by the FDIC?
A) Checking accounts (Incorrect: These are standard deposit products and
are insured.)
B) Savings accounts (Incorrect: These are standard deposit products and
are insured.)
C) Cryptocurrency assets held by the bank (Correct: Crypto assets are not
deposits and are not FDIC insured.)
D) Certificates of Deposit (Incorrect: CDs are standard deposit products
and are insured.)
ANSWER: C
What is the purpose of the Deposit Insurance Fund (DIF)?
A) To pay dividends to bank shareholders (Incorrect: The DIF is for
insurance, not shareholder returns.)
B) To fund federal student loans (Incorrect: The DIF is strictly for deposit
insurance and resolution.)
C) To insure depositors and resolve failed banks (Correct: This is the
statutory purpose of the DIF.)
D) To provide capital for bank mergers (Incorrect: The DIF is not used for
capital injections for mergers.)
ANSWER: C
If a depositor has multiple single accounts at the same bank, how are they
insured?
,A) Each account is insured up to $250,000 separately (Incorrect: Single
accounts are aggregated.)
B) They are added together and insured in the aggregate up to $250,000
(Correct: All single accounts owned by the same person at the same bank
are aggregated.)
C) They are insured up to $500,000 total (Incorrect: The limit is $250,000
per ownership category.)
D) They are insured based on the account type (Incorrect: Ownership
category dictates aggregation, not account type.)
ANSWER: B
How is a sole proprietorship account insured?
A) As a business account, separate from the owner (Incorrect: Sole
proprietorships are not separate legal entities for FDIC purposes.)
B) As a joint account with the owner's spouse (Incorrect: Spouses must be
explicitly named on a joint account.)
C) As part of the owner's single account category (Correct: Sole
proprietorship funds are added to the owner's single accounts.)
D) As a trust account (Incorrect: It is not a trust unless explicitly titled as
such.)
ANSWER: C
What happens to FDIC insurance coverage if a bank account owner dies?
A) Coverage terminates immediately (Incorrect: There is a grace period.)
B) Coverage continues as if the owner were alive for six months (Correct: A
six-month grace period applies if the deposit is reinsured or reallocated.)
C) Coverage is doubled for one year (Incorrect: There is no doubling of
coverage.)
D) Coverage is transferred to the state (Incorrect: Coverage follows the
estate/beneficiaries.)
ANSWER: B
, Which of the following is considered a "deposit" for FDIC insurance
purposes?
A) Purchased mutual funds (Incorrect: These are investment products, not
deposits.)
B) Annuities sold by the bank (Incorrect: These are insurance/investment
products, not deposits.)
C) Escrow accounts for real estate taxes (Correct: Escrow funds held by
the bank are considered deposits.)
D) U.S. Treasury bonds held in custody (Incorrect: These are securities,
not bank deposits.)
ANSWER: C
Are safe deposit box contents insured by the FDIC?
A) Yes, up to $250,000 (Incorrect: Safe deposit boxes are not deposit
accounts.)
B) Yes, up to $100,000 (Incorrect: Safe deposit boxes are not deposit
accounts.)
C) No, they are not deposit accounts (Correct: The FDIC only insures
deposit accounts, not box contents.)
D) Only if the box is rented for over a year (Incorrect: Rental duration does
not trigger deposit insurance.)
ANSWER: C
In a joint account, what is the presumption regarding ownership shares
among co-owners?
A) Shares are based on who contributed the most funds (Incorrect: FDIC
presumes equal shares regardless of contribution.)
B) Shares are presumed to be equal among all co-owners (Correct: Unless
state law explicitly states otherwise, equal shares are presumed.)
C) The primary account holder owns 100% (Incorrect: Joint accounts imply
shared ownership.)
ANSWERS 100% VERIFIED!! (2026
Edition)
What is the Standard Maximum Deposit Insurance Amount (SMDIA)?
A) $100,000 (Incorrect: This was the limit prior to 2008.)
B) $250,000 (Correct: Made permanent by the Dodd-Frank Act in 2010.)
C) $500,000 (Incorrect: This is not a standard FDIC limit.)
D) $1,000,000 (Incorrect: This is not a standard FDIC limit.)
ANSWER: B
Which act permanently increased the SMDIA to $250,000?
A) The Glass-Steagall Act (Incorrect: This act separated commercial and
investment banking.)
B) The Gramm-Leach-Bliley Act (Incorrect: This act repealed Glass-
Steagall and addressed privacy.)
C) The Dodd-Frank Wall Street Reform Act (Correct: Made the $250,000
limit permanent.)
D) The Sarbanes-Oxley Act (Incorrect: This act addressed corporate
governance and accounting.)
ANSWER: C
How is the FDIC primarily funded?
A) Congressional appropriations (Incorrect: The FDIC does not receive
federal tax funding.)
,B) Assessment on banks and interest on government securities (Correct:
Banks pay premiums into the Deposit Insurance Fund.)
C) Fees from consumer account closures (Incorrect: This is not a primary
funding source.)
D) Borrowing from the Federal Reserve (Incorrect: The FDIC has a credit
facility but is funded by assessments.)
ANSWER: B
Which of the following is NOT insured by the FDIC?
A) Checking accounts (Incorrect: These are standard deposit products and
are insured.)
B) Savings accounts (Incorrect: These are standard deposit products and
are insured.)
C) Cryptocurrency assets held by the bank (Correct: Crypto assets are not
deposits and are not FDIC insured.)
D) Certificates of Deposit (Incorrect: CDs are standard deposit products
and are insured.)
ANSWER: C
What is the purpose of the Deposit Insurance Fund (DIF)?
A) To pay dividends to bank shareholders (Incorrect: The DIF is for
insurance, not shareholder returns.)
B) To fund federal student loans (Incorrect: The DIF is strictly for deposit
insurance and resolution.)
C) To insure depositors and resolve failed banks (Correct: This is the
statutory purpose of the DIF.)
D) To provide capital for bank mergers (Incorrect: The DIF is not used for
capital injections for mergers.)
ANSWER: C
If a depositor has multiple single accounts at the same bank, how are they
insured?
,A) Each account is insured up to $250,000 separately (Incorrect: Single
accounts are aggregated.)
B) They are added together and insured in the aggregate up to $250,000
(Correct: All single accounts owned by the same person at the same bank
are aggregated.)
C) They are insured up to $500,000 total (Incorrect: The limit is $250,000
per ownership category.)
D) They are insured based on the account type (Incorrect: Ownership
category dictates aggregation, not account type.)
ANSWER: B
How is a sole proprietorship account insured?
A) As a business account, separate from the owner (Incorrect: Sole
proprietorships are not separate legal entities for FDIC purposes.)
B) As a joint account with the owner's spouse (Incorrect: Spouses must be
explicitly named on a joint account.)
C) As part of the owner's single account category (Correct: Sole
proprietorship funds are added to the owner's single accounts.)
D) As a trust account (Incorrect: It is not a trust unless explicitly titled as
such.)
ANSWER: C
What happens to FDIC insurance coverage if a bank account owner dies?
A) Coverage terminates immediately (Incorrect: There is a grace period.)
B) Coverage continues as if the owner were alive for six months (Correct: A
six-month grace period applies if the deposit is reinsured or reallocated.)
C) Coverage is doubled for one year (Incorrect: There is no doubling of
coverage.)
D) Coverage is transferred to the state (Incorrect: Coverage follows the
estate/beneficiaries.)
ANSWER: B
, Which of the following is considered a "deposit" for FDIC insurance
purposes?
A) Purchased mutual funds (Incorrect: These are investment products, not
deposits.)
B) Annuities sold by the bank (Incorrect: These are insurance/investment
products, not deposits.)
C) Escrow accounts for real estate taxes (Correct: Escrow funds held by
the bank are considered deposits.)
D) U.S. Treasury bonds held in custody (Incorrect: These are securities,
not bank deposits.)
ANSWER: C
Are safe deposit box contents insured by the FDIC?
A) Yes, up to $250,000 (Incorrect: Safe deposit boxes are not deposit
accounts.)
B) Yes, up to $100,000 (Incorrect: Safe deposit boxes are not deposit
accounts.)
C) No, they are not deposit accounts (Correct: The FDIC only insures
deposit accounts, not box contents.)
D) Only if the box is rented for over a year (Incorrect: Rental duration does
not trigger deposit insurance.)
ANSWER: C
In a joint account, what is the presumption regarding ownership shares
among co-owners?
A) Shares are based on who contributed the most funds (Incorrect: FDIC
presumes equal shares regardless of contribution.)
B) Shares are presumed to be equal among all co-owners (Correct: Unless
state law explicitly states otherwise, equal shares are presumed.)
C) The primary account holder owns 100% (Incorrect: Joint accounts imply
shared ownership.)
