What does the Federal Deposit Insurance Corporation do?
A) Insures people's investments in the stock market
B) Insures deposits in banks
C) Insures corporations against business failure
D) Insures banks so they can invest in the stock market
Answer (2)
The Federal Deposit Insurance Corporation (FDIC) insures deposits in banks to protect depositors from losses due to bank failures, up to $250,000 per depositor. It was established in 1933 to restore confidence in the banking system. The selected answer is B) Insures deposits in banks .
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The FDIC is an agency that insures deposits in banks to protect depositors against bank failures. It guarantees deposits up to $250,000 per depositor at an insured bank. This agency does not insure investments in the stock market or other investment products. ;
