Crisis and the creation of the Federal Reserve Which of the following describe b

Question

Crisis and the creation of the Federal Reserve Which of the following describe banking regulations that were implemented in response to the Great Depression? Check all that apply. President Herbert Hoover declared a national "bank holiday" to stop bank runs and give regulators time to analyze the financial condition of the banks. Federal deposit insurance on bank accounts was created to prevent bank runs. The Glass-Steagall Act separated banks into two classes: commercial banks and investment banks. Regulation Q was adopted to allow the Federal Reserve to purchase preferred stock shares in banks. The Reconstruction Finance Corporation was granted the power to provide capital to banks through loans or purchases of bank shares.

Explanation / Answer

Answer:

Which of the following describe banking regulations that were implemented in response to the Great Depression? Check all that apply

The reconstruction finance corporation was granted the power to provide capital to banks through purchases of bank shares

Explanation:

Reconstruction Finance Corporation (RFC) - Hoover's most important response to the Great Depression; it was designed to make government credit available to banks, railroads, insurance companies, and other businesses to stimulate the economy. This assumed that the problem was that companies did not have money, when really it was the consumer that did not have money to purchase the products. This saved many banks and businesses from going under recovery.

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