Question

President Roosevelt instituted a "bank holiday" early in his administration. What did this accomplish?

Answer 1

It gave bankers a safe way to close the doors on angry people who lost there money. The banks were only allowed to reopen if they had the funds to.

Answer 2

-The administration took time to look at banks and reopen the solvent ones.

Banks were evaluated during the Bank Holiday with the goal of improving faith in the banks by reopening banks that were stable enough to get customers to reinvest.

Franklin Roosevelt concluded the banks needed to be evaluated and needed customers to return their money. Most Americans had lost faith in the banks and were nervous to redeposit their money. During the Bank Holiday, Roosevelt passed new banking legislation protecting the money of customers. When the holiday was over, banks that were stable enough to do so were reopened. Citizens lined up to reinvest their money which helped to get the economy moving again.