Question

Based on your research, what is the job of the FDIC?

a. It preserves and promotes confidence in the U.S. commerce system. This is accomplished by removing or decreasing tariffs on exports and imports.
b. It preserves and promotes confidence in the U.S. military system. This is accomplished by research and development of necessary technologies.
c. It preserves and promotes confidence in the U.S. law enforcement system. This is accomplished by training and funding of local law enforcement agencies.
d. It preserves and promotes confidence in the U.S. education system. This is accomplished by increasing the funding of public education.
e. It preserves and promotes confidence in the U.S. banking system. This is accomplished by insuring bank deposits and thrift institutions.

Answer 1

The job of the FDIC is to ensure the stability of the U.S. banking system by insuring deposits up to $250,000, collecting premiums based on risk, and supervising banks to maintain a positive net worth and manageable risk levels.

Step-by-step explanation:

The Role of the FDIC

The job of the Federal Deposit Insurance Corporation (FDIC) is to preserve and promote confidence in the U.S. banking system. This is primarily achieved through insuring bank deposits up to a certain limit, which is currently $250,000 per depositor, per insured bank, for each account ownership category. This deposit insurance helps to prevent bank runs by ensuring that depositors do not lose their money even if their bank fails.

The FDIC collects insurance premiums from member banks, which is based on the bank's level of deposits and adjusted based on the riskiness of the bank's financial situation. The FDIC also plays a role in bank supervision alongside other regulatory bodies like the Office of the Comptroller of the Currency (OCC) and the National Credit Union Administration (NCUA), ensuring that the institutions have a positive net worth and that their assets are not over-risky.

Through its actions and policies, the FDIC helps maintain a stable and secure financial environment for consumers and businesses alike, thus fulfilling the vision set forth by then-President Franklin D. Roosevelt during the Great Depression.