Which agency was established in 1933 to enhance stability in the financial system?

The agency established in 1933 to enhance stability in the financial system is the Federal Deposit Insurance Corporation (FDIC). Its primary purpose is to provide deposit insurance to depositors in U.S. commercial banks and savings institutions. This insurance protects depositors by covering accounts for amounts up to $250,000 per depositor per insured bank, contributing significantly to public confidence and stability in the banking system, especially following the bank failures of the Great Depression.

The FDIC was created to mitigate the risk of bank runs and to foster a level of trust among the public that their money was safe in banks. By guaranteeing deposits, the FDIC helps to promote stability in the financial system and supports healthy banking practices.

The other options, while also integral to the financial and economic systems in the U.S., serve different primary functions. The Federal Reserve, for example, serves as the central bank and focuses on monetary policy, regulating the money supply and interest rates. The Department of Treasury is responsible for managing government revenue and financial management, including the issuance of debt. The U.S. Mint specializes in producing coinage and doesn’t directly function to stabilize the financial system.