The Agency That Was Created to Protect Depositors After the Banking

question 87

Multiple Choice

The agency that was created to protect depositors after the banking failures of 1930-1933 is the

• A)Federal Reserve System.
• B)Federal Deposit Insurance Corporation.
• C)Treasury Department.
• D)Office of the Comptroller of the Currency.

---

Definitions:

Income-Expenditure Model

An economic model that represents the equilibrium level of income or output determined by the intersection of aggregate demand and aggregate supply.

Marginal Propensity

The incremental change in spending (consumption or saving) that occurs with a change in disposable income.

Multiplier

An economic factor that quantifies the impact of a change in investment, government spending, or other financial activity on the overall economy.

Marginal Propensity

Refers to the increase in personal consumer spending that occurs with an increase in disposable income.