The FDIC
A)insures most bank deposits for up to $250,000.
B)eliminates the need for bank depositors to run to their bank when they hear bad news about the bank.
C)has been credited with reducing the number of bank failures since 1933.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The FDIC (Federal Deposit Insurance Corporation) insures most bank deposits for up to $250,000, which protects depositors in case their bank fails. This eliminates the need for bank depositors to run to their bank when they hear bad news about the bank because their deposits are insured by the FDIC. The FDIC has been credited with reducing the number of bank failures since its creation in 1933, which has helped to stabilize the US banking system.