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Upon assuming office, how did Roosevelt respond to the collapsing bank system?

A) Instituted the New Deal
B) Raised taxes
C) Deregulated banks
D) Implemented austerity measures

1 Answer

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Final answer:

Roosevelt responded to the collapsing bank system by creating a bank holiday and passing the Emergency Banking Act, which allowed federal agencies to examine banks before they reopened.

Step-by-step explanation:

After assuming the presidency, Roosevelt lost no time in taking bold steps to fight back against the poverty and unemployment plaguing the country. He immediately created a bank holiday and used the time to bring before Congress legislation known as the Emergency Banking Act, which allowed federal agencies to examine all banks before they reopened, thus restoring consumer confidence. Overall, these programs helped to stabilize the economy, restore confidence, and change the pessimistic mindset that had overrun the country.

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