Which act created unemployment insurance and old-age pensions?

• A. Wagner Act
• B. Social Security Act
• C. Emergency Banking Act
• D. Temporary Relief Act

Answer: (B)

This question tests your understanding of which New Deal program established a social safety net by creating unemployment insurance and old‑age pensions. The Social Security Act of 1935 did just that. It set up a nationwide system funded by payroll taxes that provides monthly old‑age pensions for workers when they retire and unemployment insurance to support people who lose their jobs, helping to stabilize families during the Great Depression. It also laid the groundwork for other welfare programs, like aid to dependent children and disability benefits. The other acts addressed different goals: the Wagner Act protected workers’ rights to organize and bargain collectively; the Emergency Banking Act aimed to stabilize the banking system; and the Temporary Relief Act does not pertain to creating national unemployment or pension programs.