Question

Why does the FDIC place a limit on the amount of money it will insure?
a.
The FDIC has only limited reserves.
b.
Limiting the amount of money insured encourages people with a large amount of money to spread their money out among different banks, which stimulates the economy.
c.
The FDIC believes that insuring too much money encourages reckless investing.
d.
The limit prevents the money used to replace lost deposits from being taxed.