Question

A major purpose of the fdic (federal deposit insurance corporation) during the 1930s was to

Answer 1

A major purpose of the FDIC during the 1930's was to strengthen consumer confidence in the banking system.

Answer 2

A major purpose of the FDIC (Federal Deposit Insurance Corporation) during the 1930s was to strengthen consumer confidence in the banking system.

In the early 1930s, almost 1/3 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 and strengthen American confidence in the banking system again.

The FDIC provided deposit insurance to depositors in U.S. commercial banks and savings institutions, in case that a bank failed, and regulated some banking practices.