Question

unit exam: global depression and the rise of dictatorships
due date 03/22/26 points 100
during the great depression, many banks failed. this happened when large numbers of people rushed to take out their savings at the same time. in 1933, the federal government responded by creating the federal deposit insurance corporation (fdic)
how did this economic choice by the government affect businesses and the economy?
it made people trust banks more. this helped businesses get loans and made the economy more stable.
it raised taxes on businesses. this caused many small companies to close and hurt the economy.
it controlled how much farms could produce. this helped farming businesses but slowed growth in manufacturing.
it protected trade deals with other countries. this helped big exporters but did not change much for local businesses.

Explanation:

The FDIC insured bank deposits, which restored public confidence in banks. When people trusted banks again, they kept their money in banks, allowing banks to lend more funds to businesses. This increased access to capital stabilized the overall economy. The other options describe policies unrelated to the FDIC's purpose.

Answer:

A. It made people trust banks more. This helped businesses get loans and made the economy more stable.