Which statement about the Deposit Guarantee Scheme coverage is true?

• A. In Jacinta's case, the entire €80,000 is covered.
• B. It guarantees 100% of the original investment amount for all deposits.
• C. It covers up to €10,000 per depositor.
• D. It is funded by levies on banks.

Answer: (C)

The main idea tested is how much of a depositor’s money the scheme protects. The scheme doesn’t guarantee every euro you’ve deposited; it provides a fixed limit per depositor per credit institution. In this scenario, that limit is €10,000. So if Jacinta has €80,000 in one bank, only €10,000 would be covered by the scheme, with the rest potentially at risk if the bank fails. If the funds are split across multiple banks, you could receive protection up to €10,000 in each bank, increasing the total protected amount. The coverage applies to standard deposits like current and savings accounts and term deposits, not to most investment products. Financing of the scheme (such as levies on banks) explains how the scheme is funded, but the important point about coverage is the €10,000 limit per depositor per institution.