FDR's Banking Crisis Responses

On inauguration day, FDR offered hope to Americans, promising a New Deal. Facing a banking crisis, he declared a bank holiday and called Congress to pass the Emergency Banking Act. This act allowed the government to assess banks and determine which could reopen. FDR's radio address reassured the public, leading to restored confidence as banks reopened. He emphasized the need for public support to ensure the financial system's success.

What did FDR emphasize as the only thing to fear during his inauguration?

• Economic collapse

• Fear itself

• Political opposition

• War

What was FDR's first major action to address the banking crisis?

• Reducing interest rates

• Nationalizing banks

• Declaring a bank holiday

• Implementing new taxes

What was the purpose of the Emergency Banking Act?

• To close all banks permanently

• To assess and stabilize banks

• To allow banks to issue more loans

• To increase bank profits

What did the Emergency Banking Act allow the government to do?

• Increase bank interest rates

• Examine bank finances and provide capital

• Reduce bank staff

• Close all banks permanently

How did FDR communicate with the public to restore confidence in banks?

• Through newspaper articles

• Via television broadcasts

• By sending letters

• Through a nationwide radio address

What was the result of FDR's radio address regarding the banks?

• Increased bank withdrawals

• Public panic

• Restored public confidence

• Bank closures

When were the healthy banks authorized to reopen?

• March 10th

• March 11th

• March 12th

• March 13th

What was the public's reaction when the banks reopened?

• They withdrew all their money

• They lined up to return their money

• They protested against the banks

• They ignored the banks