Question

most credit unions are insured by _______. the deposit insurance rules are the same at these insured credit unions as they are at fdic insured banks.

a. the national credit union administration (ncua)
b. the international credit union administration (incua)
c. the network company united administration (ncua)
d. the national company administration of credit (ncau)

Explanation:

Identify the governing body for credit union insurance

Credit unions are member-owned financial institutions. Unlike traditional banks, which are insured by the Federal Deposit Insurance Corporation (FDIC), credit unions are insured by a specific federal agency.

Evaluate the given options

• a. The National Credit Union Administration (NCUA): This is the independent federal agency created by the U.S. Congress to regulate, charter, and supervise federal credit unions. It administers the National Credit Union Share Insurance Fund (NCUSIF), which provides deposit insurance.
• b. The International Credit Union Administration (INCUA): This organization does not exist.
• c. The Network Company United Administration (NCUA): This is an incorrect expansion of the acronym NCUA.
• d. The National Company Administration of Credit (NCAU): This is an incorrect name and acronym.

Confirm the correct match

The National Credit Union Administration (NCUA) is the correct agency that insures credit unions, offering the same standard insurance limits as the FDIC does for banks.

Answer:

• a. The National Credit Union Administration (NCUA) (Correct answer)
• b. The International Credit Union Administration (INCUA)
• c. The Network Company United Administration (NCUA)
• d. The National Company Administration of Credit (NCAU)