8
QuizMultiple Choice

Goals and Policies of the New Deal — Quiz

Question 8 • US History

What is the main purpose of the Federal Deposit Insurance Corporation (FDIC)?

Answer
A
to force failing banks to close
B
to secure money placed in banks
C
to reduce the number of bank runs
D
to support recovery among banks

Explanation

The FDIC insures eligible deposits in member banks, protecting depositors’ money up to set limits if a bank fails. Its main purpose is therefore to secure money placed in banks. This protection can also help prevent bank runs, but that is a result of deposit insurance rather than the FDIC’s central purpose.

AI-written and checked against the verified answer.

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