Question

Which statement best explains the purpose of the Federal Deposit Insurance Commission (FDIC)? to assist operations of savings and loan associations to educate the public on trading, borrowing, and investing to ensure that banks do not fail during an economic crisis to provide startup loans and grants to new banks

Answer 1

Answer: to ensure that banks do not fail during an economic crisis

Explanation: The Federal Deposit Insurance Commission (FDIC) was created in 1933 to ensure that banks do not fail during an economic crisis. Essentially, the FDIC guarantees funds on deposits to member banks.

Answer 2

"to ensure that banks do not fail during an economic crisis" The FDIC was set up to inspire confidence in the banking system. Until the FDIC, someone could lose their money if the bank closed. With the FDIC, even if the bank closes, the person's money is insured by the Federal Government.