To put an end to the vicious cycle of bank failures during the early 1930s:
A)President Franklin Roosevelt declared a bank holiday, temporarily closing all banks.
B)the Federal Reserve System was established.
C)a system of shadow banks was developed to replace the troubled commercial banks.
D)the government nationalized all commercial banks.

Question

Quizplus · Accepted Answer

President Franklin Roosevelt declared a bank holiday, temporarily closing all banks in order to stop the panic and allow time to assess and stabilize the system. This helped restore confidence in the banking system and prevented further bank runs. The other options are not accurate solutions to the issue of bank failures during the 1930s.

To Put an End to the Vicious Cycle of Bank