If there are major failures of several large banks or many small banks, and the FDIC insurance fund is insufficient to cover all of the depositors' losses, then the U.S.government will pay the depositors the money owed by the FDIC.

Question

Quizplus · Accepted Answer

This statement is true. The U.S. government has the authority to use taxpayer funds to make up any shortfall in the FDIC insurance fund if there are widespread bank failures. This was the case during the financial crisis of 2008-2009, when the government provided additional funding to the FDIC to cover losses from bank failures.

If There Are Major Failures of Several Large Banks or Many