Banking Practice Exam 2025 - Free Banking Practice Questions and Study Guide

Deposits at credit unions are insured by the National Credit Union Administration (NCUA). This independent federal agency oversees and regulates federal credit unions, ensuring that member deposits are protected through the National Credit Union Share Insurance Fund (NCUSIF). This insurance functions similarly to the insurance provided by the Federal Deposit Insurance Corporation (FDIC) for banks, covering the members' savings, checking, and other accounts in the credit union up to a specified limit, which is typically $250,000.

The Federal Credit Union Administration is not a recognized entity; instead, the NCUA serves this regulatory role. The Federal Reserve does not provide insurance for deposits in banks or credit unions; its main roles focus on monetary policy and providing financial services to depository institutions. Lastly, the FDIC primarily insures deposits in banks and savings associations and does not insure credit union deposits. Thus, the correct answer reflects the specific agency responsible for protecting credit union members’ deposits.