ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the FED
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FDIC
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President and Congress
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SEC
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Detailed explanation-1: -When a bank fails, the Federal Deposit Insurance Corporation (FDIC) will arrange the sale of the bank customer’s assets to a healthy bank, or, less commonly, the FDIC will pay the bank deposits back directly. Between 2001 and 2022, 561 banks failed, according to the FDIC.
Detailed explanation-2: -The FDIC protects depositors of insured banks located in the United States against the loss of their deposits if an insured bank fails. Any person or entity can have FDIC insurance coverage in an insured bank. A person does not have to be a U.S. citizen or resident to have his or her deposits insured by the FDIC.
Detailed explanation-3: -The FDIC guarantees depositors their money back up to a limit of $250, 000 per account. Some of the ways to prevent bank runs include: temporarily shutting down operations, borrowing money, term deposits, and deposit insurance.
Detailed explanation-4: -The bank deposits are insured by Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India (RBI).