Federal Deposit Insurance Corporation (FDIC) by Julia Kagan

TL;DR - The FDIC is a federal agency that insures deposits in order to prevent bank runs that ensue from widespread panic.

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Tags - FDIC, banks, bank run, deposit, insurance, Great Depression

Questions answered:

  • What is the FDIC?

Summary:

  • The FDIC is an independent federal agency.
  • In light of the Great Depression, the FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system.
  • For member firms, the FDIC insures deposits up to $250,000.
  • The primary purpose of the FDIC is to prevent bank runs.

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