Question

What did the Emergency Banking Act allow the government to do? (4 points) to insure customers' deposits up to $5,000 to reorganize and reopen banks with enough money to operate to hire workers to staff deserted banks and financial institutions to borrow money so that it could spend more than it took in

Answer 1

The Emergency Banking Act was instated in 1933 after the banks were hit hard during the Great Depression. It allowed for the reorganization and reopening of banks with enough money to operate.

Answer 2

The answer is option 2: To reorganize and reopen banks with enough money to operate.

The Emergency Banking Act of 1933 was enacted with the purpose of strengthening American confidence in the banking system since previously almost 1/3 of American banks had collapsed and failed.

The legislation regulated some banking practices, established several qualified conservators to take over bookkeeping and reorganize the banks, and authorized the treasury secretary to determine which banks were in need of financial assistance and to give them loans so they can start to operate again, among others.