Consumers should make sure that commercial banks are FDIC insured before opening accounts. True False

Answer

The statement is True.

Consumers should ensure that commercial banks are insured by the Federal Deposit Insurance Corporation (FDIC) before opening accounts. The FDIC is a government agency that protects depositors by providing insurance on deposits up to a certain limit (currently $250,000 per depositor, per insured bank, for each account ownership category). This means that if the bank fails, the depositors will be reimbursed up to the insured limit, thus safeguarding their funds. Checking for FDIC insurance provides an added layer of security, enabling consumers to have peace of mind regarding their savings and investments in that bank. Therefore, verifying FDIC insurance is a crucial step in selecting a financial institution.