Financial Planner

Category - Professional Conduct and Regulation

What financial institution type is insured for losses up to $100,000?
  1. Credit Unions
  2. Brokerage Companies
  3. Insurance Companies
  4. Trust Companies
Explanation
Answer: A - Credit Unions are financial institutions that are insured for losses up to $100,000. Credit Unions are primary depositories for checking accounts and short-term financing for corporations, non-profits, cooperative financial institution owned and run by members. The funds in credit unions are pooled to make loans from members to members. Depositors benefit from earning from dividends after the credit union pay operating expenses and reserve requirements are satisfied.
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