Banking Practice Showdown 2026 – Vault into Your Future Success!

The Federal Deposit Insurance Corporation (FDIC) is the correct answer because it is the government agency responsible for providing insurance for deposits in banks, including savings associations. This insurance protects depositors by covering their accounts in the event that the financial institution fails, up to the insured limit, which is currently $250,000 per depositor, per bank. This function is crucial in maintaining consumer confidence in the banking system, ensuring that individuals feel secure about their deposits.

The other agencies mentioned serve different roles within the financial system. The Federal Reserve primarily focuses on monetary policy and regulating banking institutions but does not provide deposit insurance. The Office of Thrift Supervision once regulated savings associations but was dissolved in 2011, and its functions were transferred to the Office of the Comptroller of the Currency. The Resolution Trust Corporation was created to manage and dispose of assets from failed savings banks during the savings and loan crisis of the 1980s and 1990s, but it does not provide deposit insurance.