Want this question answered?
By preventing bank runs
Unemployment was much higher in the Depression. Also, the '30s lacked most of the safeguards we take for granted today, including unemployment compensation and deposit insurance.
FDIC stands for Federal Deposit Insurance Corporation. The purpose of this is to provide "Deposit Insurance" which guarantees the safety of cash deposited in its member banks, currently up to US $ 250,000 per depositor per bank. Currently FDIC insures deposits at more than 7500 institutions in the USA. This is to ensure that customers do not lose out their hard earned money in case of bank failures or bankruptcy
The Federal Reserve provides deposit insurance and acts as a lender to commercial banks.
The Federal Deposit Insurance Corporation, or FDIC. They ensure up to $250,000 per depositor per institution until the end of 2013. However, recently their reserves have fallen below mandated minimums set by congress because there have been so many bank failures. The FDIC is only required to have about 3.5% of total deposits available to insure losses, because it is highly unlikely that all banks in the country will go broke all at the same time.
to ensure that banks do not fail during an economic crisis
By preventing bank runs
By preventing bank runs
The establishment of federal deposit insurance corporation
Federal Deposit Insurance Corporation
The establishment of the FDIC (Federal Deposit Insurance Corporations) to regulate stock exchange so another stock market crash can be avoided.
If the deposits in one bank are insured by the government sponsored deposit insurance whereas, in another bank this insurance is not available, it means that in case the first bank goes bankrupt, the government will give me my hard earned money that I put into my account with that bank, whereas it won't do anything if the other bank that does not have deposit insurance goes bankrupt and I stand to lose my hard earned money. So, I will deposit my money only in a bank that has the FDIC insurance on deposits available.
Canada Deposit Insurance Corporation was created in 1967.
Nigeria Deposit Insurance Corporation was created in 1988.
Federal Deposit Insurance Corporation was created in 1933.
Deposit Insurance Agency of Russia was created in 2004.
Rita Carisano has written: 'Deposit insurance' -- subject(s): Deposit insurance