2006-11-08 06:14:59 · 4 answers · asked by twilightxdc 1 in Business & Finance ➔ Other - Business & Finance
No, but that is a desired outcome from their primary purpose of providing a "safer, more flexible" banking system. (see FR mission statement referenced below)
Protecting a depositors money in case of bank failure would be the main purpose of the FDIC.
2006-11-08 23:34:09 · answer #1 · answered by gray shadow 6 · 0⤊ 0⤋
No, the main purpose is to provide liquidity to the banking system so that large amounts of money can move thru the banking system to finance the operations of a capitalist economy.
2006-11-08 14:20:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋
They are there to regulate the flow of money through controlling interest rates. If inflation is high they will raise interest rates to keep up with it, if we are in a recession they will lower rates to jump start the economy.
2006-11-08 14:19:24 · answer #3 · answered by tianaramal 4 · 0⤊ 0⤋
It Is set up as a "lender of last resort" for the banks.
2006-11-08 14:47:16 · answer #4 · answered by stu_art_27 2 · 0⤊ 0⤋