Asked by Kaylea Peterson on May 19, 2024
Verified
Describe the role of the Federal Deposit Insurance Corporation (FDIC).
Federal Deposit Insurance Corporation
A United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions.
- Determine the function and activities of the Federal Reserve as the ultimate provider of funds and the significance of the Federal Deposit Insurance Corporation (FDIC) in preserving financial stability.
Verified Answer
CR
Cynthia RamosMay 25, 2024
Final Answer :
The FDIC is the primary mechanism by which the federal government guarantees the safety of deposits at most banks. The existence of the FDIC increases the stability of the banking system by significantly decreasing the likelihood of bank runs.
Learning Objectives
- Determine the function and activities of the Federal Reserve as the ultimate provider of funds and the significance of the Federal Deposit Insurance Corporation (FDIC) in preserving financial stability.