SIE practice questionmediumSIPC - Broker Protection
Which organization provides protection in case a brokerage firm becomes insolvent?
- AFederal Reserve
- BSIPC
- CFDIC
- DSIPC✓ Correct answer
Explanation
Why D — SIPC
SIPC protects customers in the event broker-dealers fail financially, up to certain limits. FDIC insures bank deposits, and the Fed sets monetary policy.
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