Question

President Franklin Roosevelt believed that declaring a bank holiday and creating the Federal Deposit Insurance Corporation (FDIC) would help the nation's bank system by Question 10 options: A) restoring public confidence in the banks. B) reducing government regulation of banks. C) restricting foreign investments. D) granting tax relief to individuals.

Answer 1

FDR declared a bank holiday to:
A) restore public confidence in the banks

Many banks were failing, so FDR fought to keep the strong banks alive in order to also keep public confidence in the banks so that they might continue to store their money in the banks and keep the economy in its cycle.