Question

Immediately upon his election, what short-term solution did Franklin Roosevelt use to end the run on bank withdrawals?

Answer 1

The correct answer is: "bank holiday".

The Emergency Banking Act was enacted in 1933, aiming to provide stability to the banking system, during the presidency of Franklin D. Roosevelt.

Michigan was the first state to declare an eight-day bank holiday, and during those days banks would remain closed. The existing fear related to bank runs and massive money withdrawals spread rapidly to other states, that started to declare their own "bank holidays".

Answer 2

Immediately upon his election, the short-term solution that Franklin Roosevelt used to end the run on bank withdrawals was a "bank holiday," since this meant that it was impossible for people to withdraw their funds.