Which program was a reform to fix bad banking practices?

Which program was a reform to fix bad banking practices?

• A. Wpa
• B. Fdic
• C. Ssa
• D. Aaa

Answer: (B)

Banking reforms aimed to restore trust in the financial system by protecting people’s money and ensuring safer bank practices. The program that fits this goal is the Federal Deposit Insurance Corporation. It was created to insure deposits, so if a bank failed, customers wouldn’t lose their savings, which reduced the fear that prompted bank runs. Along with that protection, the FDIC established rules and oversight to promote safer banking operations, addressing the kinds of risky practices that caused widespread failures during the Depression. WPA, SSA, and AAA serve different purposes: WPA focused on public works and employment, SSA created social security programs, and AAA dealt with agricultural pricing and production. None of those directly tackle banking reform, making the FDIC the correct choice for fixing bad banking practices.

Banking reforms aimed to restore trust in the financial system by protecting people’s money and ensuring safer bank practices. The program that fits this goal is the Federal Deposit Insurance Corporation. It was created to insure deposits, so if a bank failed, customers wouldn’t lose their savings, which reduced the fear that prompted bank runs. Along with that protection, the FDIC established rules and oversight to promote safer banking operations, addressing the kinds of risky practices that caused widespread failures during the Depression.

WPA, SSA, and AAA serve different purposes: WPA focused on public works and employment, SSA created social security programs, and AAA dealt with agricultural pricing and production. None of those directly tackle banking reform, making the FDIC the correct choice for fixing bad banking practices.