Question

Why were banks the focus of attention early in the First New Deal?

The banks had been overlending to people and businesses, causing ripple effects throughout the economy when they could not pay out deposits or collect on loans.
The banks and their employees were the only groups thriving in the midst of the economic downturn and were seen as scapegoats for the widespread suffering of average people.
The banks were seen as to blame for the economic downturn because throughout the previous decade they had strict and limited lending policies that stifled growth

The establishment of a bank holiday is an example of which goal of New Deal legislation?

Relief
Reform
Reduction

Answer 1

1. The banks were seen as to blame for the economic downturn because throughout the previous decade they had strict and limited lending policies that stifled growth
2. Reform

Step-by-step explanation:

The New Deal was an economic policy program launched by the president of the United States, Roosevelt, in 1933, which aimed to fight the effects of the great depression in the country.

It was an interventionist policy program and therefore, the State developed an essential role in the New deal. Roosevelt believed that if the State did not intervene, there was a risk that the situation would get worse. Specifically, on the one hand, I was afraid that there would be deflationary episodes (sustained declines in the price level) because, when the population saw its purchasing power diminished, it could not buy all the goods available in the market, so there would be an excess of supply that would lead to a drop in prices. On the other hand, I was sure that if the situation was not addressed from the State there would be increases in the unemployment rate.

Answer 2

1) Why were banks the focus of attention early in the First New Deal?
*The banks were seen as to blame for the economic downturn because throughout the previous decade they had strict and limited lending policies that stifled growth

2)The establishment of a bank holiday is an example of which goal of New Deal legislation?

Reform