The FDIC

Question

The FDIC

Quizplus · Accepted Answer

The FDIC (Federal Deposit Insurance Corporation) provides explicit deposit insurance coverage, guaranteeing the safety of a depositor's accounts in member banks up to a certain limit. It does not have the authority to charter national banks or establish reserve requirements; those responsibilities fall to other entities, such as the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, respectively. The notion of implicit deposit insurance coverage at its discretion is also accurate, as the FDIC can take discretionary actions to protect depositors beyond the explicit guarantees.