What legislative act established the FDIC to protect bank deposits?

The establishment of the Federal Deposit Insurance Corporation (FDIC) was integral to restoring public confidence in the banking system during the Great Depression. The Bank Act of 1933, also known as the Glass-Steagall Act (partially), created the FDIC as part of its provisions. This act was introduced in response to the widespread bank failures of the early 1930s, which had led to a loss of savings for many Americans.

By insuring deposits, the FDIC provided a safety net for bank customers, ensuring that even if a bank failed, individuals would get their deposits back up to a certain limit. This insurance was crucial in encouraging people to deposit their money into banks again, thus stabilizing the banking sector. While the Glass-Steagall Act also played a significant role in banking reform, it is the Bank Act of 1933 that specifically formalized the creation of the FDIC and its regulatory framework, making it the correct answer regarding the establishment of the FDIC.

Other legislative acts listed, such as the Social Security Act and the Securities Exchange Act, addressed different issues. The Social Security Act focused on social welfare and the Securities Exchange Act dealt with regulating the stock market; neither of these established the FDIC