SAT Subject US History Practice Question 642: Answer and Explanation
83. Which of the following explains the original purpose of the Federal Deposit Insurance Corporation (FDIC)?
A. To force poor people to deposit their income tax returns
B. To force employers to insure workers against injury
C. To insure corporations exploring for mineral deposits
D. To insure bank deposits up to $5,000
E. To protect banks against securities fraud
Correct Answer: D
The original purpose of the FDIC was to make sure that if there was another widespread bank failure, people would not lose everything they had saved. The federal government would guarantee that up to $5,000 of their money would be safe.