With the creation of the FDIC:

Question

BlackTom AI · Accepted Answer

When the FDIC was created by the Banking Act of 1933, federal-member banks were required to participate while state-chartered banks that were not Federal Reserve members had the option to apply for insurance coverage.

Relevant knowledge points and concepts:
- The FDIC (Federal Deposit Insurance Corporation) was established in 1933 to insure depositors and stabilize the banking system after widespread bank failures.
- “Member banks” refers to banks that belong to the Federal Reserve System; “non‑member banks” typically refers to state‑chartered banks that had not joined the Fed.
- The initial statute made FDIC membership mandatory for Fed member banks and permitted state nonmember banks to opt in if they met FDIC standards.

Step-by-step reasoning:
1. The FDIC’s purpose was to restore depositor confidence by providing federal deposit insurance. To implement this broadly and quickly, the law required Federal Reserve member banks to be covered.
2. State nonmember banks were not automatically compelled because many were chartered under state law and regulatory arrangements varied; the FDIC provided an opt‑in mechanism so these banks could join if they met the agency’s requirements.
3. Therefore the legal arrangement at creation was asymmetric: mandatory for Fed member banks, optional for nonmember banks.

Why the correct answer is correct:
- Option d precisely states that Fed member banks had to purchase (i.e., participate in) FDIC insurance, while non‑member banks could choose to opt in. This matches historical statute and implementation.

Why the other options are incorrect:
- a is wrong because not all banks were automatically required to join.
- b reverses the requirement and is incorrect.
- c is wrong because membership was not universally optional.

Conclusion: The correct answer is d. Fed member banks had to purchase, non‑member banks could opt‑in.

With the creation of the FDIC:Single choice

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