What legislation was designed to assure the safety of bank deposits by insuring them?

The Federal Deposit Insurance Corporation (FDIC) was established in 1933 in response to the widespread bank failures during the Great Depression. This legislation aimed to restore public confidence in the banking system by insuring bank deposits, which meant that depositors' funds were protected up to a certain limit, even if their bank failed. The creation of the FDIC helped stabilize the banking system by preventing bank runs, where a large number of customers withdraw their deposits simultaneously due to fears that the bank might collapse. The insurance mechanism not only safeguarded individual depositors but also contributed to the overall health of the economy by promoting financial stability and encouraging people to utilize banking services, knowing their money was safe.

The other options, while significant in their respective areas, did not specifically address the insurance of bank deposits. For example, the Glass-Steagall Act focused on separating commercial and investment banking, the Public Works Administration was responsible for large-scale public works construction projects to promote recovery, and the Securities Act aimed at regulating the stock market to protect investors.