The FDIC Was Created in

question 7

Multiple Choice

The FDIC was created in

• A)1913 by the Congress at the same time the Fed was created.
• B)1933 by the Congress as a result of the banking collapse in the early years of the Great Depression.
• C)1945 in the reforms put in place after World War II.
• D)1980 by the Congress as part of the overall movement towards deregulation.

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Definitions:

Risk Premium

The additional return over the risk-free rate demanded by investors for taking on a higher level of risk.

Beta

A measure of a security's volatility in relation to the overall market; a beta above 1 indicates higher than market average volatility.

Risk-Free Rate

The expected return on an investment that carries no risk, frequently indicated by government bond yields.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, used widely in statistics to quantify the degree of difference.