SAT Subject US History Practice Question 934: Answer and Explanation

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Question: 934

15. The Social Security Act of 1935 was important in that it

A. offered direct relief to eligible unemployed and disabled individuals.
B. reformed the existing federal unemployment insurance system.
C. created a new agency to monitor investment in the securities industry.
D. provided relief for businesses in financial trouble as a result of the Depression.
E. succeeded in relieving the problems of the banking system.

Correct Answer: A

Explanation:

The Social Security Act of 1935 gave direct relief to those unable to work for a variety of reasons. Federal unemployment insurance (B) was part of the Social Security Act and did not exist before this time. The Securities and Exchange Commission (SEC) was established in 1934 to monitor investments in various securities (C). Social Security was not designed to give aid to businesses in trouble as a result of the Depression (D). The issue of banking was addressed by the Glass-Steagall Act of 1933.

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