Question

What did the Emergency Banking Act allow the government to do? (4 points) to insure customers' deposits up to $5,000 to reorganize and reopen banks with enough money to operate to hire workers to staff deserted banks and financial institutions to borrow money so that it could spend more than it took in

Answer 1

The Emergency Banking Act was instated in 1933 after the banks were hit hard during the Great Depression. It allowed for the reorganization and reopening of banks with enough money to operate.

Answer 2

The correct answer is the following: The Emergency Banking Act allowed the government to reorganize and reopen banks with enough money to operate. The Emergency Banking Act was passed on March 9th, 1933 by the United States Congress in an attempt to stabilize the banking system that was suffering as a result of the Great Depression.

The Act was passed three days after President Roosevelt declared a nationwide bank holiday, in an attempt to reorganize the situation. With the Emergency Banking Act, the Federal Bank sent unlimited reserve funds in order to reopen Banks across the country that would have enough money to operate.