SIE Exam Question 910: Answer and Explanation

Question: 910

Which of the following preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks by identifying, monitoring, and addressing risks to the deposit insurance funds; and by limiting the effect on the economy when a financial institution fails?

• A. FDIC
• B. NASD
• C. PBGC
• D. SIPC

Correct Answer: A

Explanation:

The FDIC preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks by identifying, monitoring, and addressing risks to the deposit insurance funds; and by limiting the effect on the economy when a financial institution fails.