The Federal Deposit Insurance Corporation protected people's money in banks

Question

Its just a question from my homewor. I don't understand it. I even check in the book. Can you help me? 

Answer 1

FDIC is governmental insurance to prevent the loss of personal funds in a bank, in case the bank becomes insolvent. Prior to the existence of FDIC, there was no guarantee. I believe that this came into being during the early FDR years (1933)--part of FDR's sweeping plans to recover from the Depression. Students need to know and understand this history, to combat latter day ignorance which undeservedly condemns Big Government.