The Purpose of Creating the FDIC Was to

question 178

Multiple Choice

The purpose of creating the FDIC was to

• A) restore confidence in banking institutions.
• B) serve as clearinghouses for transactions involving commercial banks and savings and loans.
• C) provide federally guaranteed insurance to small businesses at low cost.
• D) help the Federal Reserve enforce reserve requirements.

---

Definitions:

Humble

characterizes a person who has a modest or low view of their own importance.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion.

Hypotheses

Tentative explanations or predictions that can be tested through observation and experimentation.

Theories

Systematic frameworks of ideas intended to explain phenomena, based on principles and evidence, which can guide research and understanding in various fields.