The Primary Purpose of Both the FDIC and the Savings

question 49

Multiple Choice

The primary purpose of both the FDIC and the Savings Association Insurance Fund (SAIF) is to

• A)Increase depositor confidence in the banking system.
• B)Control the nation's money supply.
• C)Set reserve requirements for the banking system.
• D)Provide funds for home mortgages.

---

Definitions:

Voice Mechanisms

Methods or processes through which opinions, feedback, or preferences are expressed and communicated in a decision-making context.

Exit Mechanisms

Strategies or methods used by investors, entrepreneurs, or organizations to withdraw their stake from an investment or business venture.

Union Wage Advantage

The higher wages earned by unionized workers compared to their non-union counterparts due to collective bargaining.

Misallocation

The inefficient distribution of resources, often leading to missed opportunities or wasted potential.