Question

How did Franklin Roosevelt attempt to restore trust in the banking system? 

A. He declared a bank holiday and developed a ranking system for banks.   B. He let the free market sort out strong and weak banks.   C. He pushed billions of dollars of government money into buying the banks.   D. He declared a bank holiday and then kept most banks closed.

Answer 1

Answer: A) He declared a bank holiday and developed a ranking system for banks.

Step-by-step explanation:

Answer 2

The correct answer is A) He declared a bank holiday and developed a ranking system for banks.

When President Franklin D. Roosevelt took over, thousands of banks across the US already shut down because they ran out of money. To fix this problem, FDR declared a bank holiday. This means that all banks in the US would be closed for a four day period. During that period, the federal government would go over the records of several different banks to learn more about why they failed. From there, Roosevelt ranked the banks so that the federal government could keep a close eye on the banks that made bad decisions during the 1920's and early 1930's.