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:

Divergent Thinking

A cognitive process used to generate creative ideas by exploring many possible solutions and approaches in an open-ended way.

Concept

An abstract idea or a mental symbol that is typically used to denote a class of things, events, or phenomena.

Prototype

An original model or preliminary version of something from which other forms are developed or copied.

Mental Set

A psychological tendency to approach problems in a certain way due to past experiences and successes, potentially limiting creativity.