When the market crashed, many Americans went to banks to withdraw their money only to find the banks had no money left. What did the FDIC do to try to make sure individuals did not lose all their savings in the future?

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Sloane Yoder

23 June, 12:18

When the market crashed, many Americans went to banks to withdraw their money only to find the banks had no money left. What did the FDIC do to try to make sure individuals did not lose all their savings in the future?

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Anaya Pearson · Answer 1

FDIC gives guarantee and insures the deposits

Explanation:

FDIC Stands for Federal deposit insurance corporation. Whenever the banking system fails in an economy FDIC provides security to all those who have deposited their money in the banks. It gives the guarantee.

FDIC insures the deposits of all the banks of the US.

It was created to build public confidence. Before FDIC there was no safety of deposits. On bank failures, the depositors used to rush and tried to withdraw their money first.