Question

Which statement best describes the US government's role with the banking industry at the beginning of the Depression?

Federal agencies forced banks to close if they could not insure all of their accounts.

The government passed laws to provide insurance on individual accounts.

Individual banks were inspected and supervised by agents of the government.

The government had little involvement with monitoring the health of banks.

Answer 1

The best statement which describes the US government's role in the banking industry at the beginning of the Depression is D. The government had little involvement with monitoring the health of banks. I hope that this is the answer that you were looking for and it has helped you.

Answer 2

I believe the answer is: The government had little involvement with monitoring the health of banks.

The banks at that time were notorious for giving the credit without actually having enough capital to back the credit up, and a lot of reckless speculation were made by investment analyst who work for the banks Without government involvement, they have every freedom to do so. Over time, this create massive bubble that lead to the Great Depression.