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SAT® Subject Test in U.S. History

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The FDIC

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What was the important goal of The Federal Deposit Insurance Corp. (FDIC) which was an integral part of The Banking Act of 1933?

A

To prevent massive bank failure such as what was experienced between 1929 and 1932.

B

To encourage Americans to refrain from using their savings to invest in the stock market.

C

To offer cheap mortgage insurance to struggling Americans.

D

To increase bank reserves in order to banks to lend credit to American businesses.

E

To convince skeptical Americans about the safety of depositing their money in re-opened banks.