Question

The federal deposit insurance corporation (FDIC) _______?

A. insures customer deposits if a bank fails

B. insures banks if a borrower does not repay the loan

C. insures homeowners against natural disasters

D. all of the above

Answer 1

The correct answer is A. The FDIC was created to put public trust in the banks by insuring deposits. The FDIC was created in 1934 and has insured deposits to where no depositor has lost any money in a bank failure.