Question

What does the FDIC do?

It creates a Federally controlled savings organization.
It provides extra money to savings and loan companies.
It provides insurance against savings and loan failures.
It provides insurance against any banks that fail.

Answer 1

`\boxed {\boxed {\sf D. \ It \ provides \ insurance \ against \ any \ banks \ that \ fail}}`

Step-by-step explanation:

During the Great Depression, when the banks failed, stock market crashed, and the economy was essentially crippled, most Americans lost their faith in the economy and banks.

In an attempt to rectify the issue, the president at the time, Franklin Roosevelt passed the Banking Act in 1933. It established the Federal Deposit Insurance Company.

This agency still runs todays, with the main purpose of keeping the economy and citizens stable, safe, and confident. It provides deposit insurance to depositors. If a bank fails, the FDIC protects the money.

So, the best answer choice is D: The FDIC provides insurance against any banks that fail.