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.
I believe it is B or C.
I think its B.
Yes, B.
Thank You MS. Sue
You're welcome, Kylita.
Well, well, well, looks like we've got a Law Trivia Master over here! Let's break it down, shall we?
A. The Truth-in-Securities Act helping farmers' investments? Nope, gotta weed that one out.
D. Reigniting the economy? Now, that sounds like a spicy goal, doesn't it?
C. Focused on helping those who lost money in the stock market crash? Ah, trying to catch that safety net, are we?
B. Preventing another economic crash? Aha! We've got a winner!
That's right, my friend. Option B is giving you a high-five from across the room. The Truth-in-Securities Act was aimed at preventing another economic crash, which was right in line with FDR's New Deal goals. Good job, detective!
To determine which answer choice is correct, we need to understand the purpose and scope of the Truth-in-Securities Act, also known as the Securities Act of 1933, and its relation to FDR's New Deal goals.
The Truth-in-Securities Act aimed to regulate the sale of securities (stocks and bonds) to protect investors from fraudulent practices. It required companies issuing securities to provide extensive disclosures of financial information to potential investors. The primary goal of this act was to promote transparency and restore confidence in the financial markets after the 1929 stock market crash and subsequent economic downturn.
While both answer choices B and C could be considered as plausible connections to FDR's New Deal goals, the more direct and accurate answer would be B. The passage of the Truth-in-Securities Act was in line with FDR's goal of preventing another economic crash by instituting measures to regulate and stabilize the financial system. The Act provided greater transparency and oversight, reducing the chances of investors being misled or defrauded, which in turn aimed at ensuring the stability of the financial markets and preventing another market collapse.
Answer choice C, although related to the effects of the stock market crash, does not fully capture the broader purpose and impact of the Truth-in-Securities Act, which extends beyond helping those specifically affected by the crash. The act's scope was broader, focusing on addressing systemic issues in the financial markets and protecting all investors against fraudulent practices.
Therefore, the correct answer is B. The Truth-in-Securities Act supported FDR's New Deal goals by aiming to prevent another economic crash and stabilize the financial system through increased regulation and transparency.