Question

What is the function of the FDIC?

It keeps savings and loans from going bankrupt.
It prevents big business monopolies and trusts.
It protects people's money in case a bank folds.
It provides protection for companies that go under.

Answer 1

The third option is the correct answer.

Answer 2

It protects people's money in case a bank folds, is the correct option.

Step-by-step explanation:

The main job of FDIC is to promote confidence in the banking system by insuring the deposits in financial institutions and monitoring the financial institution's behavior for risk. The FDIC intervenes when an FDIC institution fails.

If an institution fails FDIC takes one of the two steps. The first step is to set up the insured account with a new bank, the second option is that FDIC will issue the depositors check for the insured amount so as to directly reimburse to the depositor.