Questions: The Federal Housing Administration (FHA) began backing mortgages in the 1930s and 1940s leading to a boom in US homeownership. What was a primary reason for this new type of federal investment in the housing market? To build trust and stability in the banking industry. To weaken landlords' power over renters. To racially integrate the housing market. To end slums.

The answer is: To build trust and stability in the banking industry.

Explanation for each option:

1. To build trust and stability in the banking industry: This is the correct answer. The Federal Housing Administration (FHA) was established in 1934 during the Great Depression, a time when the banking industry was in crisis and many Americans were losing their homes. By insuring mortgages, the FHA aimed to reduce the risk for lenders, thereby encouraging them to offer more loans to potential homeowners. This federal backing helped to stabilize the banking industry and restore trust in the mortgage market.

2. To weaken landlords' power over renters: While the FHA's actions did indirectly affect the rental market by making homeownership more accessible, this was not the primary reason for its establishment. The main goal was to stabilize the housing market and the banking industry, not to directly target landlords.

3. To racially integrate the housing market: Unfortunately, the FHA's policies in the 1930s and 1940s did not aim to racially integrate the housing market. In fact, the FHA was known for practices that contributed to racial segregation, such as redlining, which denied mortgages to people in predominantly African American neighborhoods.

4. To end slums: While improving housing conditions and reducing slums was a broader goal of New Deal housing policies, the primary reason for the FHA's creation was to stabilize the banking industry and make homeownership more accessible through mortgage insurance. Ending slums was more directly addressed by other programs and policies.

In summary, the primary reason for the FHA's investment in the housing market was to build trust and stability in the banking industry by insuring mortgages and encouraging lenders to provide more home loans.