Question

What was the role of the US government in the banking industry at beginning of the depression

Answer 1

Answer:
The federal reserve issued the money supply and based the dollar on the gold standard.
Step-by-step explanation:
In 1929 the banking industry was not controlled by the federal government, it was controlled by the federal reserve which is privately owned.
Nevertheless reforms were brought, for instance the gold standard was abolished and the separation between commercial banks and investment banks was enforced by the Glass-Steagall Act.

Answer 2

The correct answer is D) The government had little involvement with monitoring the health of banks.

The other options of the question were A) Federal agencies forced banks to close if they could not insure all of their accounts. B)The government passed laws to provide insurance on individual accounts. C)Individual banks were inspected and supervised by agents of the government.

The role of the US government in the banking industry at the beginning of the Depression was "The government had little involvement with monitoring the health of banks."

That precisely represented a problem for the United States economy and the citizens that were suffering from the lack of jobs and poverty. The Great Depression started on October 29, 1929, when the United States stock market crashed. Thousands of people lost their jobs, banks went into bankruptcy, and companies closed. That is why when he became President, Franklin D. Roosevelt created the New Deal programs to help the American people.