Which act created a federal-state system of unemployment insurance and care for the needy as part of the New Deal?

• A. Social Security Act
• B. Agricultural Adjustment Act
• C. National Recovery Administration
• D. Securities and Exchange Commission

Answer: (A)

The question is about which New Deal measure created a joint federal-state system to support unemployed workers and those in need. The Social Security Act did exactly that by establishing unemployment insurance funded by payroll taxes and operating through state-administered programs under federal guidelines, along with other welfare provisions. This built the framework for a nationwide social safety net during the Great Depression. The other acts targeted different goals: the Agricultural Adjustment Act focused on boosting farm prices by limiting production; the National Recovery Administration promoted industrial codes for business recovery; the Securities and Exchange Commission regulated financial markets.