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What Was One of the Main Purposes of the Glass-Steagall

Question 25

Multiple Choice

What was one of the main purposes of the Glass-Steagall Banking Act of 1933?


A) It reduced the chance that another panic would occur by creating the Federal Deposit Insurance Corporation (FDIC) to insure customer bank accounts up to a certain amount of money.
B) It merged commercial banking and investment banking so that the two were indistinguishable, and banks were more likely to invest in the savings of depositors in the stock market.
C) It took away the Federal Reserve Board's authority to intervene in future financial crises and thereby perpetuated the current banking crisis.
D) It required that all countries, starting with the United States, adopt the gold standard so that the president could decrease the money supply.
E) It created the Civilian Conservation Corps (CCC) , which gave many struggling workers office jobs in the banking industry and drastically improved unemployment rates.

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