PDIC may satisfy insured deposits by cash or by transferring deposits to another insured bank. Is this statement true?

PDIC may satisfy insured deposits by cash or by transferring deposits to another insured bank. Is this statement true?

• A. Cash only
• B. Transferring only
• C. Both cash and transferring
• D. Neither

Answer: (C)

When a bank fails, PDIC protects depositors by two main methods. It can satisfy insured deposits by paying cash up to the insured limit, or by transferring those deposits to another PDIC‑insured bank. The cash payout gives quick access to funds, while the transfer keeps the depositor’s funds within the insured banking system, preserving coverage and continuity of service. The insured limit (per depositor, per bank) governs how much is protected in either option. Because PDIC has both ways to satisfy insured deposits, the statement is true.

When a bank fails, PDIC protects depositors by two main methods. It can satisfy insured deposits by paying cash up to the insured limit, or by transferring those deposits to another PDIC‑insured bank. The cash payout gives quick access to funds, while the transfer keeps the depositor’s funds within the insured banking system, preserving coverage and continuity of service. The insured limit (per depositor, per bank) governs how much is protected in either option. Because PDIC has both ways to satisfy insured deposits, the statement is true.