SAT Subject US History Practice Question 776: Answer and Explanation
37. To protect citizens from bank failures, Franklin D. Roosevelt and Congress established the
A. National Industrial Recovery Act (NIRA).
B. Securities and Exchange Commission (SEC).
C. Federal Deposit Insurance Corporation (FDIC).
D. Social Security Administration.
E. Federal Reserve System.
Correct Answer: C
The FDIC was established under the Banking (Glass-Steagall) Act of 1933 to protect depositors' money. NIRA (A) dealt with standards of production and business practice. The SEC (B) regulated the sale of stocks and bonds. Social Security (D) was established to provide direct relief to individuals, in particular the elderly and disabled. Established in 1913 under President Woodrow Wilson, the powers of The Federal Reserve System (E) were broadened in the 1930s. The "Fed" monitors the money supply and banking practices.