Responses
Banks are required to keep the full amount of every deposit made in their vaults.
Banks are required to keep the full amount of every deposit made in their vaults.
The United States dollar can be exchanged for a fixed quantity of gold.
The United States dollar can be exchanged for a fixed quantity of gold.
Depositor funds are insured against potential loss in the event of a bank failure.
Depositor funds are insured against potential loss in the event of a bank failure.
Commercial and investment banking practices are strictly separated by law.
1 answer
The correct response is:
Depositor funds are insured against potential loss in the event of a bank failure.
The Banking Act of 1935 strengthened the Federal Deposit Insurance Corporation (FDIC) and expanded the insurance coverage for depositor funds, helping to restore public confidence in the banking system during the Great Depression.
