Certified Financial Planner (CFP) Practice Exam 2025 – All-in-One Study Guide for Exam Success!

The correct answer is $250,000. The Federal Deposit Insurance Corporation (FDIC) provides insurance for depositors in member banks, covering checking accounts, savings accounts, and certificates of deposit. As of the latest information, the coverage limit per depositor, per insured bank, is $250,000 for individual accounts.

In the context of Mrs. Hoffman's assets, if her deposits are within that limit at a single FDIC-insured bank, they would be fully insured. Therefore, it is essential to understand that each separate account ownership category has its own limit. For example, if Mrs. Hoffman has individual accounts and also joint accounts, she could have coverage that exceeds $250,000, but for each of her individual accounts at one bank, the limit is indeed $250,000.

This information is critical for managing risk in banking and helps individuals make informed decisions about how to structure their accounts to maximize their insured deposits.