Question

In which way did Roosevelt attempt to restore the nation's confidence in the banking system? A. Firing and replacing top banking executives B. Ordering banks to keep 100 percent of deposits in cash C. Declaring a bank holiday to give banks time to get in order D. Lowering interest rates

Answer 1

C.....declaring a bank holiday meant he was closing banks that were failing

Answer 2

The correct answer is C. Declaring a bank holiday to give banks time to get in order.

When President Franklin D. Roosevelt took over the office, he declared a national 4 day holiday for banks. At this time, this bank holiday was a necessity as many banks ran out of currency and were forced to close. To combat the negative effects of the Great Depression on the banking industry, FDR closed all banks so that they may get their affairs in order. This included individuals from the federal government inspecting bank records and developing an idea of what banks deserved to receive federal funds in order to be bailed out.