Question

FDIC provides for:




consumer protection against loss

flexibility in accessing money.

popularity of your bank

convenience for spending.

Answer 1

The FDIC, or Federal Deposit Insurance Corporation, primarily provides consumer protection against loss. It insures deposits in member banks and savings associations, protecting depositors by covering losses up to $250,000 per depositor, per insured bank, in the event of a bank failure. This insurance helps promote public confidence in the banking system.

While the FDIC does indirectly support the flexibility in accessing money and can influence the popularity of a bank through the assurance it provides, its main role centers on deposit insurance and consumer protection. Convenience for spending is more related to the services offered by financial institutions rather than a direct function of the FDIC.