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Answer:
Your answer would be A). 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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Americans regained faith in the banks after President Roosevelt signed the Emergency Banking Relief Act into law because the act 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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Definition:
Emergency Banking Relief Act:
An act that was passed in March 1933 by Congress to try and stabilize the banking system.
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Explanation:
The reason why "allowed only healthy banks to remain open, so people believed that banks that passed the act's requirements really were sound" is your answer is because President Roosevelt wanted to fix the problem of banks, since banks were becoming untrustworthy because of the Great Depression. The banks during the time were making mass withdrawals, in other words, were called the "run on the banks." This act closed all of the banks on a day called National Bank Holiday, which allowed examiners to go and check all the banks to see if they're capable of functioning of not. If the banks were weak, they would be shut down. They also made provisions to reorganize the banks, so that they would function properly. Because of this, people started to trust banks more due to the fact that the Act that was passed checked all the banks to see which ones are the strongest, and the strongest ones that stayed open are trustworthy, so the people trusted the banks more because they were confirmed to be a bank that could be managed.
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Why the other answers are incorrect:
Answer choice B). gave people the right to withdraw all their money at any time without a penalty or waiting period is INCORRECT because:
This is something that President Roosevelt DID NOT want banks to do. President Roosevelt wanted to PREVENT massive withdrawals. If the banks were to give all the money back to the person, it would show that the person can't trust the bank, and would just store the money with them instead of storing it in a bank, this term was called the "run on the banks." The Emergency Banking Relief Act didn't allow people to withdraw all of their money.
Answer choice C). authorized the federal government to immediately deposit $1 billion in banks to guarantee peoples' deposits is INCORRECT because:
The federal government DID NOT give $1 billion dollars in order to guarantee people's deposits. The Emergency Banking Relief Act didn't give banks $1 billion dollars, that was not part of the act.
Answer choice D). required the federal government to pay back in full the customers of any bank that failed is INCORRECT because:
The Emergency Banking Relief Act did not make the government pay for banks that failed. What the Emergency Banking Relief Act actually did was close banks that did not function properly. If the government were to pay for the fails of banks, the government would lose A LOT of money, and the government couldn't pay people that much because of failed banks.
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-Julie
