Among the first laws passed by FDR was the Truth-in-Securities Act. How did it support his New Deal goals?
A The law’s purpose was to make sure farmers’ investments were safe.
B The law’s goal was to prevent another economic crash.
C The law was focused on helping those who lost money in the stock market crash.
D The law was mainly enacted as a way to reignite the economy.
C or B
thx
YW
which one
To determine how the Truth-in-Securities Act supported FDR's New Deal goals, we need to understand the purpose and implications of the law.
The Truth-in-Securities Act, also known as the Securities Act of 1933, was enacted in response to the stock market crash of 1929 and aimed to restore confidence in the financial markets. Its primary goal was to regulate the issuance and trading of securities, such as stocks and bonds, by requiring companies to provide full and accurate disclosure of relevant information to potential investors.
With this background information, let's analyze the answer choices:
A) The law's purpose was to make sure farmers' investments were safe.
This answer choice is incorrect because the Truth-in-Securities Act focused on regulating securities and ensuring transparency in the financial markets, rather than specifically targeting farmers' investments.
B) The law's goal was to prevent another economic crash.
This answer choice is correct. The Truth-in-Securities Act aimed to prevent another economic crash by implementing regulations to increase transparency and reduce fraudulent practices in the securities market. By requiring companies to disclose accurate and complete information, investors could make more informed decisions, thus contributing to the stability of the financial system.
C) The law was focused on helping those who lost money in the stock market crash.
This answer choice is partially correct. While the Truth-in-Securities Act sought to protect investors from fraudulent practices, its main focus was on preventing future economic crises by promoting transparency in the securities market. However, it did indirectly assist those who lost money in the stock market crash by implementing measures to prevent similar securities fraud in the future.
D) The law was mainly enacted as a way to reignite the economy.
This answer choice is incorrect as the primary aim of the Truth-in-Securities Act was to regulate the securities market and prevent fraudulent practices rather than directly stimulating the economy.
In conclusion, the correct answer is either B) The law's goal was to prevent another economic crash or C) The law was focused on helping those who lost money in the stock market crash. However, it is important to note that the law primarily aimed to prevent future economic crises by regulating securities and promoting transparency in the financial markets.