Yellen: Prepared to Take Additional Actions on Deposits

The video discusses the FDIC's decisive actions to bolster public confidence in the US banking system. It highlights measures taken to protect depositors at failed institutions and provide liquidity to banks, while clarifying that shareholders and debt holders are not protected by the government. The video also explains that deposit protection is funded by fees on insured banks, not taxpayers. It concludes by emphasizing the tools used to prevent contagion and the readiness to take additional actions if necessary.

What was one of the main actions taken by the FDIC to boost public confidence in the banking system?

• Increasing interest rates

• Protecting all depositors at failed institutions

• Providing tax cuts

• Reducing bank fees

Who is not protected by the government in the event of a bank failure?

• Bank executives

• Bank employees

• Shareholders and debt holders

• Depositors

How is the Deposit Insurance Fund financed?

• Through donations

• Through taxpayer money

• By government bonds

• By fees on insured banks

What is the purpose of the tools used by the FDIC in the banking system?

• To increase bank profits

• To prevent contagion and ensure deposit safety

• To reduce bank competition

• To increase shareholder value

What assurance is given about American deposits?

• They are at risk

• They are safe

• They are not insured

• They are partially insured