10
QuizMultiple Choice

Goals and Policies of the New Deal

Question 10 • MS U.S. History - SS3307 B-IC

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

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

Explanation

The FDIC insures eligible deposits in member banks, protecting customers’ money up to legal coverage limits if a bank fails. This protection helps people feel confident keeping money in banks, which can also reduce bank runs, but its main purpose is to secure deposited money. The correct choice is “to secure money placed in banks.”

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