Question

why was the federal deposit insurance corporation (fdic) created?

a. to protect the financial assets of their customers.
b. to protect the financial assets of themselves.
c. to make more money off of customers.

Explanation:

Identify the purpose of the FDIC

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the U.S. Congress in 1933 during the Great Depression. Its primary mission is to maintain stability and public confidence in the nation's financial system.

Analyze the role of financial institutions

As we look at Financial Institutions, they hold deposits for individuals and businesses. When banks failed in the 1930s, depositors lost their savings, which devastated public trust.

Evaluate the given options

• Option a states the FDIC protects the financial assets of customers. This matches its purpose of insuring individual deposits.
• Option b suggests it protects the institutions themselves, which is incorrect.
• Option c suggests a profit motive, which does not apply to a government insurance corporation.

Determine the correct choice

Therefore, the FDIC was created to protect the deposits and financial assets of bank customers.

Answer:

• a. To protect the financial assets of their customers. (Correct answer)
• b. To protect the financial assets of themselves.
• c. To make more money off of customers.