3
lesson pretestMultiple Choice

Pretest

Question 3 • US History

Which of these describes a responsibility of the FDIC?

Answer
A
to regulate trade on the stock market
B
to reduce the risk of investing in stocks
C
to monitor whether corporations follow the law
D
to limit the losses of bank account holders

Explanation

The FDIC insures deposits at member banks, protecting account holders up to the coverage limit if a bank fails. This helps limit depositors’ losses. Monitoring corporate compliance and regulating stock-market trading are not FDIC responsibilities, and the FDIC does not reduce the risk of investing in stocks.

AI-written and checked against the verified answer.

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