Question

Aside from insuring personal bank accounts, what other major responsibility does the FDIC have today?

A. Manage failed banks
B. Collect sales taxes
C. Make investment choices for small businesses
D. Print money if the economy needs it

Answer 1

The FDIC's other major responsibility besides insuring bank accounts is managing failed banks, ensuring financial stability through deposit insurance, and preventing bank runs.

Step-by-step explanation:

Aside from insuring personal bank accounts, the FDIC, or Federal Deposit Insurance Corporation, has the major responsibility of managing failed banks (Option A). The FDIC evaluates the balance sheets of banks, assessing the asset and liability values to determine the risk level. Importantly, if a bank fails, the FDIC ensures that depositors will receive up to $250,000 per account. This has significantly reduced the occurrence of bank runs since the enactment of deposit insurance in the 1930s. The FDIC also collects deposit insurance premiums from banks as part of its responsibilities.