Which of the following is true?
A) The FDIC sets the reserve requirements for commercial banks.
B) The Federal Reserve System guarantees the deposits in almost all banks up to a $250,000 limit per account.
C) Since the Federal Reserve System was established in 1913, bank failures due to panic withdrawals have been virtually eliminated.
D) If a bank should fail, the FDIC guarantees that depositors can get their funds up to a $250,000 limit per account.

Question

Quizplus · Accepted Answer

The FDIC (Federal Deposit Insurance Corporation) guarantees deposits in case of bank failure up to a $250,000 limit per account. The Federal Reserve System regulates banks and the money supply, but it does not guarantee deposits. Option A is incorrect because the Federal Reserve sets the reserve requirements for commercial banks, not the FDIC. Option C is incorrect because while the Federal Reserve has helped reduce bank failures due to panic withdrawals, they have not been virtually eliminated.

Which of the Following Is True