If there are major failures of several large banks or many small banks, and the Federal Deposit Insurance Corporation (FDIC) insurance fund is insufficient to cover all of the depositors' losses, which of the following bodies is responsible for paying the depositors money owed by the FDIC?

Question

Quizplus · Accepted Answer

The U.S. government is responsible for paying the depositors money owed by the FDIC if its insurance fund is insufficient to cover their losses. This is because the FDIC is an independent agency of the federal government, and its obligations are ultimately backed by the full faith and credit of the U.S. government. The Federal Reserve System, boards of the failed banks, and the National Credit Union Administration do not have the authority or resources to make these payments.

If There Are Major Failures of Several Large Banks or Many