Question

Which of the following was a measure taken by the government during the New Deal to avoid

another collapse of the banking system:
A. Forcing banks to separate their investment business from their regular commercial business
B.Putting America back on the gold standard to limit the amount of capital available to Wall Street
C. Creating direct government
control over the largest investment banks
D. Splitting up large investment banks into smaller units

Answer 1

During the New Deal, the government took measures to avoid another collapse of the banking system. One of these measures was splitting up large investment banks into smaller units.

Step-by-step explanation:

The measure taken by the government during the New Deal to avoid another collapse of the banking system was D. Splitting up large investment banks into smaller units.

The government implemented this measure through the Glass-Steagall Act, which prevented banks from engaging in both commercial and investment banking activities.

This measure aimed to protect depositors' money and separate risky investment activities from traditional banking, thereby increasing the stability of the banking system.