Asked by Reyna Castro on May 01, 2024

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What was true of the Emergency Banking Relief Act?

A) It provided for the complete separation of commercial banking from investment banking.
B) It provided for federally insured deposits in reopened banks.
C) It put the responsibility for reopening banks into the hands of state examining boards.
D) It provided for the reopening of banks that were solvent and the reorganization of those that were not.

Emergency Banking Relief Act

A law passed in 1933 at the start of the Roosevelt Administration that allowed the federal government to take steps to stabilize the banking industry during the Great Depression.

Commercial Banking

Financial institutions that accept deposits, offer checking account services, and make various loans to businesses and individuals.

Investment Banking

A sector of the banking industry that deals with the creation of capital for other companies, governments, and other entities, through underwriting or acting as the client's agent in issuing securities.

  • Identify and expound upon the roles of multiple bodies and regulations in counteracting the economic adversity of the 1930s.
  • Dissect the implications of the New Deal policies on the sectors of labor, agriculture, and banking.
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Verified Answer

ZK
Zybrea KnightMay 06, 2024
Final Answer :
D
Explanation :
The Emergency Banking Relief Act provided for the reopening of banks that were solvent and the reorganization of those that were not. It did not address the separation of commercial and investment banking or put the responsibility for reopening banks into the hands of state examining boards. While federally insured deposits were eventually implemented, they were not initially part of the Emergency Banking Relief Act.