A major purpose of the FDIC (Federal Deposit Insurance Corporation) during the 1930s was to A) limit government borrowing. B) break up banking monopolies. C) create jobs for the unemployed. D) strengthen consumer confidence in the banking system

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2 February, 14:48

A major purpose of the FDIC (Federal Deposit Insurance Corporation) during the 1930s was to A) limit government borrowing. B) break up banking monopolies. C) create jobs for the unemployed. D) strengthen consumer confidence in the banking system

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Lincoln Cochran · Answer 1

D) strengthen consumer confidence in the banking system

In the early 1930s, almost a third of American banks had collapsed and failed, and American consumers had lost trust in the banking system. As a response to this, Roosevelt's administration created the 1933 Banking Act, which formed the FDIC, with the purpose to provide stability to the U. S.'s economy. The corporation regulated some banking practices and insured bank deposits in certain banks, in case that a bank failed.