The FDIC Was Created Because

question 8

Multiple Choice

The FDIC was created because

• A) banks failed to create money the way the Fed wanted them to.
• B) people worried about bank failures after World War I, even though very few banks actually failed.
• C) there were so many bank failures in the 1930s.
• D) the Fed kept the required reserve ratio too low.

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Definitions:

Differentiation

The process of distinguishing a product, service, or business in the market by developing unique features, benefits, or capabilities.

Communication

The process by which information is exchanged between individuals through a common system of symbols, signs, or behavior.

Yielding Conflict

A conflict resolution strategy where one party gives in to the demands or viewpoints of another to resolve the disagreement.

Equal Power

A condition or state where all participants or groups have the same amount of control, influence, or authority.