Lesson 66: FDIC and Stability Measures – Banking Safety & Financial
System Stability
The FDIC is managed by a five-member board of directors appointed by the President of the
United States and confirmed by the U.S. Senate. - correct answer ✔✔True
Suppose Sunny Bank experiences a bank run. It is very likely that its competitor, Rainy Bank, will
also experience a bank run. - correct answer ✔✔True
Which of the following situations would most likely cause a bank run? - correct answer ✔✔The
FDIC is dissolved, and there is a low reserve requirement ratio on a bank's deposits.
Which of the following statements about the FDIC is NOT true? - correct answer ✔✔The FDIC is
in charge of planning and executing the country's monetary policy.
The FDIC is funded by - correct answer ✔✔income received from the premium payments of
insured banks.
Which of the following is NOT a reason why banks would dislike an increase in the reserve
requirement ratio? - correct answer ✔✔It increases people's confidence in the banking system.
Which one of the following is insured by the FDIC? - correct answer ✔✔Checking account
deposits
What does "FDIC" stand for? - correct answer ✔✔Federal Deposit Insurance Corporation
The highest maximum insurance limit established up to this date has been - correct answer
✔✔$250,000.
System Stability
The FDIC is managed by a five-member board of directors appointed by the President of the
United States and confirmed by the U.S. Senate. - correct answer ✔✔True
Suppose Sunny Bank experiences a bank run. It is very likely that its competitor, Rainy Bank, will
also experience a bank run. - correct answer ✔✔True
Which of the following situations would most likely cause a bank run? - correct answer ✔✔The
FDIC is dissolved, and there is a low reserve requirement ratio on a bank's deposits.
Which of the following statements about the FDIC is NOT true? - correct answer ✔✔The FDIC is
in charge of planning and executing the country's monetary policy.
The FDIC is funded by - correct answer ✔✔income received from the premium payments of
insured banks.
Which of the following is NOT a reason why banks would dislike an increase in the reserve
requirement ratio? - correct answer ✔✔It increases people's confidence in the banking system.
Which one of the following is insured by the FDIC? - correct answer ✔✔Checking account
deposits
What does "FDIC" stand for? - correct answer ✔✔Federal Deposit Insurance Corporation
The highest maximum insurance limit established up to this date has been - correct answer
✔✔$250,000.
