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.
The answer is B I think
To determine how the Truth-in-Securities Act supported FDR's New Deal goals, we can analyze the purpose and effects of the Act.
The Truth-in-Securities Act, also known as the Securities Act of 1933, was one of the first laws passed during FDR's presidency as part of his New Deal policies. The main focus of this act was to regulate the securities (stocks, bonds, and other investments) market and provide transparency to investors, aiming to prevent fraudulent activities and reduce the risks associated with investing.
By requiring companies to provide accurate and detailed information about their offerings to potential investors, the Act aimed to protect investors from fraudulent schemes and manipulations in the stock market. It enforced regulations that ensured transparency in financial statements and disclosures, preventing companies from misrepresenting or hiding crucial information.
In the context of the New Deal, the Truth-in-Securities Act had several goals that supported FDR's broader agenda. Firstly, by establishing regulations to safeguard investors, it aimed to restore confidence and stability in the financial markets after the devastating effects of the Great Depression. This restoration of trust was crucial for rejuvenating the economy and promoting investment.
Secondly, the Act sought to prevent another economic crash by tackling fraudulent practices and increasing investor awareness. By ensuring that accurate information was available to potential investors, it aimed to reduce speculative market behavior, which had contributed to the stock market crash of 1929 and subsequent economic downturn. This protection was an important step towards preventing future financial crises.
Considering these factors, option B is the most accurate answer: The Truth-in-Securities Act supported FDR's New Deal goals by aiming to prevent another economic crash. It did so by regulating the securities market, providing transparency to investors, and reducing the risks associated with investing.