What Was the Primary Reason That Congress Initiated Deposit Insurance

question 94

Multiple Choice

What was the primary reason that Congress initiated deposit insurance in the 1930s?

• A) protect the deposits of individual savers
• B) provide more of an incentive for depositors to monitor bank activities
• C) reduce systemic risk to the financial system
• D) reduce information problems in the banking system

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Definitions:

Diversification Strategy

A diversification strategy is used by companies that are adding new products, product lines, or businesses to their existing core products, product lines, or businesses.

Fleishman Job-Analysis

A systematic method for evaluating the skills, abilities, and knowledge required for specific jobs, developed by Edwin A. Fleishman.

Taxonomy

A system of classification that organizes concepts, objects, or information into categories based on shared characteristics or attributes.

Mental Processes

The internal, covert activities of our minds, such as thinking, feeling, and remembering.