To prevent bank runs and the consequent bank failures,the United States established the ________ in 1934 to provide deposit insurance.
A)FDIC
B)SEC
C)Federal Reserve
D)ATM

Question

Quizplus · Accepted Answer

The Federal Deposit Insurance Corporation (FDIC) was established in 1934 in response to the numerous bank failures during the Great Depression. The FDIC provides deposit insurance to protect depositors in case a bank fails, which helps to prevent bank runs and stabilize the banking system. The other options listed - SEC, Federal Reserve, and ATM - do not provide deposit insurance and do not have a primary function of preventing bank runs.

To Prevent Bank Runs and the Consequent Bank Failures,the United