Which of the following is a result of the Banking Act of 1935?(1 point)

Question

Responses

Banks are required to keep the full amount of every deposit made in their vaults.
Banks are required to keep the full amount of every deposit made in their vaults.

The United States dollar can be exchanged for a fixed quantity of gold.
The United States dollar can be exchanged for a fixed quantity of gold.

Commercial and investment banking practices are strictly separated by law.
Commercial and investment banking practices are strictly separated by law.

Depositor funds are insured against potential loss in the event of a bank failure.
Depositor funds are insured against potential loss in the event of a bank failure.

Answer 1

The correct response to the question regarding the results of the Banking Act of 1935 is:

Depositor funds are insured against potential loss in the event of a bank failure.

The Banking Act of 1935 expanded the authority of the Federal Reserve and strengthened the regulation of banks, including measures related to deposit insurance. However, it's important to note that although the concept of deposit insurance was introduced with the Federal Deposit Insurance Corporation (FDIC) in the Banking Act of 1933, the Banking Act of 1935 solidified and regulated these measures further.