Probably the most significant factor explaining the drastic drop in the number of bank failures since the Great Depression has been
A)the creation of the FDIC.
B)rapid economic growth since 1941.
C)the employment of new procedures by the Federal Reserve.
D)better bank management.

Question

Quizplus · Accepted Answer

The creation of the FDIC (Federal Deposit Insurance Corporation) in 1933 provided confidence to depositors as it insured their deposits in case of bank failures. This helped prevent panic withdrawals and runs on banks, which were major causes of bank failures during the Great Depression. Since then, the FDIC has played a vital role in the stability of the banking system and has significantly contributed to the decrease in bank failures.

Probably the Most Significant Factor Explaining the Drastic Drop in the Number