Web Application Chapter 9 page 361

America's Great Depression began with the dramatic crash of the stock market on October 24, 1929 when 16 million shares of stock were quickly sold by panicking investors who had lost faith in the American economy. More than 9000 banks failed between the stock market crash of October 1929 and March of 1933. As a result of the crash, the nation's banking system was seriously hurt. Out of this chaos, the Federal Deposit Insurance Corporation (FDIC) was created to add stability to the American banking system. The following Web site, www.fdic.gov/comsumers/symbol/text.html, contains the article "Symbol of Confidence" with the information needed to answer the following questions.

Answer questions 1-3 using complete sentences. Include facts from the article "Symbol of Confidence" in your answers.

1. The FDIC is an independent agency of the federal government that is managed by a board of directors. How many members sit on the FDIC board?

2. Who appoints the members of the managing board of directors?

3. In 1934, coverage was limited to $2500 per depositor. On March 31, 1980, coverage was raised to $100,000. What is the current limit coverage per depositor?

Indicate whether the following statements are true or false. If false, rewrite the statement to make it true.

4. _____ Securities and mutual funds, as well as deposits, are all covered under the deposit insurance coverage.

5. _____ The FDIC receives congressional appropriations to carry out its mission as a deposit insurer and banking regulator.

Include the date of the information in your answer for questions 1 to 5.

© Copyright 2000 Addison Wesley Longman, Inc.