The Dodd-Frank Act of 2010 was intended to address what, and what new agency did it establish?

• A. Abolished the Securities and Exchange Commission.
• B. Strengthened financial regulation after the 2008 crisis; established the Consumer Financial Protection Bureau (CFPB).
• C. Created a new federal debt-management agency.
• D. Dissolved the Federal Reserve's oversight function.

Answer: (B)

The main idea being tested is that after the 2008 financial crisis, Congress pushed through broader financial regulation and created a strong consumer-protection body—the Consumer Financial Protection Bureau. The Dodd-Frank Act was designed to tighten oversight of financial institutions and risky activities, with a clear aim to prevent another crash. The best answer reflects both parts: it strengthened financial regulation and established the CFPB to supervise consumer financial products and enforce laws against unfair or deceptive practices.

This choice is not about abolishing the SEC, creating a debt-management agency, or dissolving the Federal Reserve’s oversight duties, which do not align with the actual reforms and new agency created by Dodd-Frank.