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How does the FDIC determine the insurance premiums for member banks?

  • Fixed rate

  • Risk-based

  • Size-based

  • Randomly

Answer

The FDIC charges insurance premiums based on the risk that the insured bank poses. This means that banks with higher risk profiles will pay higher premiums, while those with lower risk profiles will pay lower premiums. This system encourages banks to maintain sound financial practices.
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