What is the FDIC's primary purpose?

The primary purpose of the FDIC (Federal Deposit Insurance Corporation) is to maintain public confidence in the U.S. financial system. This is achieved by protecting depositors' funds in member banks, providing insurance for deposits up to a certain limit. By ensuring that depositors' money is safe, the FDIC plays a crucial role in preventing bank runs and maintaining stability in the financial system. When individuals know their deposits are insured, they are more likely to trust and use the banking system, which is vital for a strong economy.

The other options do not align with the FDIC's core mandate. While providing loans to struggling banks may be a function of different financial policies or institutions, it is not a primary role of the FDIC. Similarly, regulating the stock market and overseeing insurance companies fall under the purview of other financial regulatory bodies, such as the Securities and Exchange Commission (SEC) and state insurance regulators, respectively. The FDIC's focus remains primarily on deposit insurance and promoting public confidence in banks.