Question

What is the function of the FDIC?

Answer 1

Answer:

It protects people's money in case a bank folds, is the correct option.

Explanation:

The main job of FDIC is to promote confidence in the banking system by insuring the deposits in financial institutions and monitoring the financial institution's behavior for risk. The FDIC intervenes when an FDIC institution fails.

If an institution fails FDIC takes one of the two steps. The first step is to set up the insured account with a new bank, the second option is that FDIC will issue the depositors  check for the insured amount so as to directly reimburse to the depositor.

Answer 2

The third option is the correct answer.