When people invest in mutual funds, they are making loans to banks and their investments are insured by the fdic.

False

Explanation:

A mutual fund is a type of investment whose operation consists of gathering the monetary contributions of different people. Mutual funds are based on a set of investments consisting of stocks, debt instruments or it can be a combination of both.

The FDIC is a type of government-sponsored insurance that protects consumers against bank robberies, natural disasters, bank failures, and other unforeseen events. Mutual funds are managed by a specialized management society, therefore, mutual funds are not insured by FDIC.

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