THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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allowed only healthy banks to remain open, so people believed that banks that passed the act’s requirements really were sound
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gave people the right to withdraw all their money at any time without a penalty or waiting period
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authorized the federal government to immediately deposit $ 1 billion in banks to guarantee peoples’ deposits
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required the federal government to pay back in full the customers of any bank that failed
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Detailed explanation-1: -Signed by President Franklin D. Roosevelt on March 9, 1933, the legislation was aimed at restoring public confidence in the nation’s financial system after a weeklong bank holiday.
Detailed explanation-2: -The legislation increased presidential powers during the banking crisis, allowed the Comptroller of the Currency to restrict banks with impaired assets from operating, provided for additional bank capital through the Reconstruction Finance Corporation, and permitted the emergency issuance of Federal Reserve Bank Notes.
Detailed explanation-3: -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.