Final answer:
The bank holiday declared after the 1929 stock market crash was a measure to prevent the collapse of the banking system by assessing bank solvency and reinstating public confidence through federal oversight.
Step-by-step explanation:
A bank holiday was declared following the stock market crash of 1929 to prevent the collapse of the banking system. President Roosevelt signed the Emergency Banking Act of 1933, which allowed federal auditors to assess the solvency of banks. This banking crisis was a result of massive bank runs where depositors would rush to withdraw their savings, often leading banks to lack sufficient cash to meet all withdrawals and be forced to close. By the implementation of these measures, which included taking the country off the gold standard, the federal oversight was able to stabilize the financial system and restore public confidence.