FDIC. Why is FDIC insurance important? $($Select the best answer below.$)$

$($A$)$

FDIC insurance is needed so the public has faith in the financial system and will therefore keep money in a safe or stuffed in

mattress instead of keeping it in a financial institution. The funds are available to be borrowed by others.

FDIC insurance is needed so the public has faith in the financial system and will therefore deposit money in a financial institution

instead of keeping it in a safe or stuffed in a mattress. The funds are then available to be borrowed by others.

FDIC insurance is needed so the public has faith in the financial system and will therefore deposit money in a financial institution

instead of keeping it in a safe or stuffed in a mattress. The funds are not available to be borrowed by others.

$($D$)$

FDIC insurance is needed so the public trusts the banks to have a higher interest rate and will therefore deposit money in a

financial institution instead of keeping it in a safe or stuffed in a mattress. The funds are then available to be borrowed by others.