What does the FDIC do?

What does the FDIC do?

• A. They protect your money in the bank from the bank making bad decisions.
• B. They regulate the stock market.
• C. They issue travel advisories.
• D. They supervise weather forecasting.

Answer: (A)

FDIC protects bank deposits by insuring them up to a limit, so if a bank fails, customers get their money back. This safeguard helps people feel secure keeping their funds in insured banks and preserves trust in the banking system. It does not regulate the stock market—that's handled by the SEC—nor issue travel advisories—that's handled by the State Department—nor supervise weather forecasting—that's the job of weather agencies like the National Weather Service. So, the description that highlights deposit protection is the correct one.

FDIC protects bank deposits by insuring them up to a limit, so if a bank fails, customers get their money back. This safeguard helps people feel secure keeping their funds in insured banks and preserves trust in the banking system. It does not regulate the stock market—that's handled by the SEC—nor issue travel advisories—that's handled by the State Department—nor supervise weather forecasting—that's the job of weather agencies like the National Weather Service. So, the description that highlights deposit protection is the correct one.