Question

What did FDR do to restore public confidence in the banks?

A. He replaced the capitalist system of the United States with socialism.\
B. He sent Congress home and promised the public he would close banks.\
C. He personally reimbursed everyone who had lost money when banks closed.\
D. He asked Congress to regulate the banks and close those that were bankrupt.

Answer 1

D. He asked Congress to regulate the banks and close those that were bankrupt.

President Franklin D. Roosevelt restored public confidence in the banking system by declaring a bank holiday, passing the Emergency Banking Act, and establishing the FDIC, which together stabilized banks and reassured the public.

Step-by-step explanation:

To restore public confidence in the banks during the Great Depression, President Franklin D. Roosevelt took several decisive actions. After declaring a nationwide bank holiday, which temporarily closed all banks, Congress passed the Emergency Banking Act in March 1933 at Roosevelt's behest. This act allowed the government to inspect the financial health of banks and approve their reopening, backed by federal support. People's confidence in the banking system was also boosted by Roosevelt's fireside chats, in which he communicated directly with the public, explaining these measures and instilling a sense of calm and trust. Additionally, the establishment of the Federal Deposit Insurance Corporation (FDIC) assured depositors that their money was safe. The measures taken by Roosevelt were successful in stabilizing the banking system and regaining public trust.