The primary purpose of the FDIC is to reduce the potential for

Question

Quizplus · Accepted Answer

The FDIC, or Federal Deposit Insurance Corporation, was created in 1933 in response to the widespread bank failures during the Great Depression. The primary purpose of the FDIC is to insure deposits in member banks, therefore reducing the potential for bank runs and protecting depositors' funds. A government agency regulating banking is not the primary purpose of the FDIC, nor is preventing reserve cheating or controlling interest rates.

The Primary Purpose of the FDIC Is to Reduce the Potential