Question

To protect citizens from bank failures, what was established by Franklin D. Roosevelt and Congress?

• A. National Industrial Recovery Act (NIRA).
• B. Securities and Exchange Commission (SEC).
• C. Federal Deposit Insurance Corporation (FDIC).
• D. Social Security Administration.
• E. Federal Reserve System.

Answer 1

The correct option is C Federal Deposit Insurance Corporation (FDIC).

The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices. As of 2018, the FDIC insures deposits up to $250,000 per depositor as long as the institution is a member firm. It is critical for consumers to confirm if their institution is FDIC insured.