Who is liable for the payment of the insurance premium for deposits covered by the PDIC?

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Study for the Supernova Regulatory Framework for Business Transactions Test. Use flashcards and multiple choice questions. Each question has hints and explanations. Get prepared for your exam!

Multiple Choice

Who is liable for the payment of the insurance premium for deposits covered by the PDIC?

Explanation:
The key idea is that PDIC insurance premiums are a cost borne by the banks, not the depositors. Banks participate in the PDIC program and are responsible for paying the premium to fund the deposit insurance fund. Depositors benefit from the protection, but they do not pay the premium themselves. The President is not involved in this payment arrangement. So the bank is the one liable for the insurance premium.

The key idea is that PDIC insurance premiums are a cost borne by the banks, not the depositors. Banks participate in the PDIC program and are responsible for paying the premium to fund the deposit insurance fund. Depositors benefit from the protection, but they do not pay the premium themselves. The President is not involved in this payment arrangement. So the bank is the one liable for the insurance premium.

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