Practice Quiz

Praxis II Early Education Content Knowledge

Category - Social Studies

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Which of the following is an example of the federal government’s role in economics?
  1. When a bank’s customers demand all of their money at once but the bank does not have enough money, the Federal Deposit Insurance Corporation (FDIC) has to step in and make sure the customers receive their money.
  2. When a business fails because of poor customer service and inflated prices
  3. When a restaurant’s patron becomes ill
  4. When an entrepreneur takes out a loan from a bank
Explanation
Answer: A - The best example of the federal government’s role in economics is when a bank’s customers demand all of their money at once but the bank does not have enough money, and the Federal Deposit Insurance Corporation (FDIC) has to step in and make sure the customers receive their money. The FDIC insures banks up to a certain amount for these exact reasons.
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