Which of the following is the most important protection against fears of bank collapse?
A) the Federal Reserve
B) the Federal Reserve Open Market Committee
C) the Federal Deposit Insurance Corporation
D) the gold and silver that backs Federal Reserve notes

Question

Quizplus · Accepted Answer

The Federal Deposit Insurance Corporation (FDIC) is the most important protection against fears of bank collapse because it provides insurance for depositors in the case of a bank failure. This means that even if a bank were to collapse, depositors would not lose their money as long as their deposits are insured by FDIC. The Federal Reserve and its open market committee are important institutions for the U.S. monetary system but do not directly protect individual depositors. The gold and silver that back Federal Reserve notes are also important for the stability of the U.S. currency, but they do not directly protect depositors in the case of a bank failure.

Which of the Following Is the Most Important Protection Against