What is the primary role of the Federal Deposit Insurance Corporation (FDIC)?

A To regulate stock market trading

B To insure deposits in eligible banks

C To provide loans to small businesses

D To manage the national debt

✓ Correct Answer: Option B

The FDIC's main function is to protect bank depositors by insuring their money up to certain limits, typically $250,000 per depositor, per insured bank, for each account ownership category.

💡 Why is B) the correct answer?

The correct answer to the question "What is the primary role of the Federal Deposit Insurance Corporation (FDIC)?" is Option B: To insure deposits in eligible banks.

The other options — A) To regulate stock market trading, C) To provide loans to small businesses, D) To manage the national debt — are incorrect for this General Knowledge question. As explained above: The FDIC's main function is to protect bank depositors by insuring their money up to certain limits, typically $250,000 per depositor, per insured bank, for each account ownership category.

📚 About This General Knowledge Practice Question

This 2-level General Knowledge question from the Abbreviations & Full Forms topic is part of One Paper Preparation's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free General Knowledge practice test or use flashcards for spaced repetition review.

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What is the primary role of the Federal Deposit Insurance Corporation (FDIC)?

✓ Correct Answer: Option B

📚 About This General Knowledge Practice Question

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