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The Federal Deposit Insurance Corporation (FDIC).
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∙ 14y ago
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What might happen if the government did not insure bank deposits?
people would lose their savings if their banks went out of business
What caused the Bank Panic what was the result?
There have been many Bank Panics, all were caused by a sudden need to withdraw savings by a large number of people. The result is banks closing and often going out of business, with many people losing their life savings. In the 1930s FDR worked to establish the FDIC to insure bank deposits to reduce the chance of Bank Panics and protect people's savings deposited in banks.
What did president Washington do on the issue of whether or not congress could establish a national bank?
sided with hamilton
Who argued that the Constitution did not specifically grant Congress the power to establish a national bank?
Alexander Hamilton
Are deposits assets or liabilities of a bank?
Customers deposits in a bank are the bank's liabilities because they are OWED to the customer.
What were American bank deposits in 1995?
In 1995, $2.7 trillion was held in American bank deposits
Are bonds insure by the FDIC?
No. FDIC does not insure bonds. It only insures the deposits that customers place in banks. 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. And this is not applicable to Bonds.
Are bank deposits subordinated debt?
Subordinated debt is a debt that ranks lower than bank deposits. From this point of view subordinated debt can't be deposits
Why did the congress establish the federal reserve system '?
to serve as a reserve bank for other banks to ease shortages of cash or to credit banks that have an excess.
What does the Federal Deposit Insurance Corporation do?
It acts as an insurer of bank customer deposits. A+
A person who handles deposits and withdrawals in a bank?
A Bank Teller
How do you conserve gold?
In bank deposits.
