ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Created the FDIC
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Paid people to go back to the banks
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Bought all the banks himself
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None of the above
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Detailed explanation-1: -Roosevelt’s quick action did much to restore faith in the banking system. The Glass‐Steagall Banking Act (June 16) boosted confidence even further by setting up the Federal Deposit Insurance Corporation (FDIC), which guaranteed bank deposits up to $5, 000.
Detailed explanation-2: -The Banking Act established the FDIC. It also separated commercial and investment banking and for the first time extended federal oversight to all commercial banks. The FDIC would insure commercial bank deposits of $2, 500 (later $5, 000) with a pool of money collected from the banks.
Detailed explanation-3: -The crisis environment led to the call for deposit insurance. Ultimately, the force of public opinion spurred Congress to enact deposit insurance legislation. The Banking Act of 1933, which created the FDIC, was signed by President Roosevelt on June 16, 1933.
Detailed explanation-4: -Steagall insuring bank deposits were combined into the Banking Act of 1933. This is fre-quently called the Glass-Steagall Act, which FDR signed on June 16. The Banking Act of 1933 gave the Fed more tools to control the money supply and set interest rates on bor-rowing by banks, which affect con-sumer loan rates.