4. If you picked "False" you are correct.

Until a cashier's check, money order, interest check or other official check is cashed or deposited elsewhere and it "clears" the bank it is drawn on, the funds are still considered to be on deposit at that bank. So, if that bank fails before the check clears, the FDIC will combine the amount of the check with your other deposit accounts in the same ownership category, and the combined total will be insured to $100,000. See full story...

Back to the Quiz