Question

The most important function of the FDIC is it-

A) sells failed banks to foreign countries

C) insures peoples' checking and savings
accounts up to a certain dollar amount

B) exists to share the risk of borrowing and
lending money with the banks

D) acts as debt collector in the event that a
family defaults on a loan

Answer 1

Answer:

Option C: Insures peoples' checking and savings account up to a certain dollar amount.

What is the FDIC?

The FDIC, also known as the Federal Deposit Insurance Corporation, is a public corporation that was established in 1933 as one of Roosevelt New Deal programs to help build America's economy again and help the country through the ending stages of the Depression. The purpose of the FDIC is too insure, up to a specified amount, all demand deposits of member banks.

So in other words, it protects depositors of insured banks against loss of their deposits if the bank fails.  

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