A Level History - America - Practice Exam

What was one of the primary aims of the New Deal during the 1930s?

1. To reduce the power of the federal government

2. To improve trust in banks and ensure savings

3. To eliminate income tax for all citizens

4. To sharply decrease government spending

The correct answer is: To improve trust in banks and ensure savings

The primary aim of the New Deal during the 1930s was indeed to improve trust in banks and ensure savings. Launched by President Franklin D. Roosevelt in response to the Great Depression, the New Deal encompassed a series of programs, public work projects, and regulations aimed at addressing the economic crisis and restoring confidence among the American public. One significant aspect of the New Deal was the establishment of the Federal Deposit Insurance Corporation (FDIC) in 1933, which insured bank deposits and helped to stabilize the financial system. By guaranteeing people's savings, the FDIC played a crucial role in rebuilding trust in the banking system, which had been severely eroded due to widespread bank failures during the Depression. This initiative not only sought to protect individual savings but also to encourage depositors to return to banks, thereby facilitating economic recovery. The other options do not align with the objectives of the New Deal. For instance, the New Deal expanded the role of the federal government rather than reducing its power, as it implemented numerous programs aimed at economic recovery. Eliminating income tax for all citizens was not part of the agenda; rather, the government sought to generate revenue through taxation to fund various recovery efforts. Lastly, the New Deal focused on increasing government spending