Question

The fdic was created as a direct result of the failures that lead to the great depression.

a. True
b. False

Answer 1

The Federal Deposit Insurance Corporation (FDIC) was established in 1933 after the great depression that witnessed thousands of bank failures that occurred in the 1920s to early 1930s. The FDIC insures deposits and directly examines and supervises around 4,000 banks and saving banks on operational safety and soundness. The FDIC further examines the banks' compliance with consumer protection laws.