The Federal Deposit Insurance Corporation (FDIC):

Question

Quizplus · Accepted Answer

The FDIC was created in 1933 in response to the failure of many banks during the Great Depression. Its purpose was to reduce the risk of banking by insuring depositors' accounts up to a certain amount, and by intervening to prevent the spread of bank failures. Choice A is incorrect as the FDIC has a standard insurance limit of $250,000 per depositor, per insured bank. Choice B is incorrect as the FDIC was actually created in response to the banking crisis that occurred in the early 1930s, rather than after World War II. Choice D is incorrect as the FDIC is not involved in creating monetary policy, which is the responsibility of the Federal Reserve Board.