FDR's Response to the Banking Crisis

What is the primary purpose of the talk?

• To announce a new banking holiday

• To introduce new banking regulations

• To discuss recent actions taken regarding banks

• To explain the mechanics of banking

What happens to the money you deposit in a bank?

• It is stored in a safe deposit box

• It is invested in various forms of credit

• It is kept entirely in currency

• It is used to pay bank employees

What caused the rush to turn bank deposits into currency or gold?

• A government announcement

• Undermined public confidence

• A sudden increase in interest rates

• A new banking law

What was the first step taken by the government in response to the banking crisis?

• Issuing new currency

• Closing all banks

• Providing a National Bank holiday

• Selling bank assets

What did the legislation passed by Congress allow?

• Immediate reopening of all banks

• Extension of the bank holiday and rehabilitation of banking facilities

• Nationalization of all banks

• Issuance of new currency without backing

What did the National Congress demonstrate by passing the legislation?

• A lack of urgency

• A devotion to public welfare

• A need for more debate

• A desire to close all banks

What was the third stage in the government's response to the banking crisis?

• Permitting banks to continue essential functions

• Closing unsound banks

• Issuing new currency

• Nationalizing the banking system

What is the purpose of the new currency being issued?

• To pay off national debt

• To increase inflation

• To meet every legitimate call

• To replace old currency

What backs the new currency being issued?

• Gold reserves

• Good assets

• Foreign investments

• Government bonds

What was the impact of the bank holiday on the public?

• It resulted in great inconvenience

• It led to immediate reopening of banks

• It caused widespread panic

• It had no significant impact