In response to the looming credit crisis of 2008,the FDIC

Question

Quizplus · Accepted Answer

The FDIC temporarily increased the amount covered for each depositor to $250,000 in response to the credit crisis of 2008. This was meant to assure depositors that their money was safe and to prevent panic withdrawals that could have further exacerbated the crisis. Options A and B are not accurate responses as the FDIC did not advertise nationally that they would stand behind the banks, nor did they borrow money from the Treasury to buy insolvent banks. Option D is also not accurate as the FDIC is not the entity that sells bonds - that would be the Department of the Treasury.

In Response to the Looming Credit Crisis of 2008,the FDIC