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Since 1933 we have had very few "runs" on banks. How did the Glass-Steagall Act help prevent such bank "runs"?

User Katherin
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Final answer:

The Glass-Steagall Act prevented bank runs by prohibiting commercial banks from engaging in investment banking and creating the FDIC to insure bank deposits.

Step-by-step explanation:

The Glass-Steagall Act, passed in June 1933, helped prevent bank runs by implementing various measures to restore confidence in the banking system during the Great Depression. The act prohibited commercial banks from engaging in investment banking, which prevented banks from speculating in the stock market with deposits. Additionally, the Glass-Steagall Act created the Federal Deposit Insurance Corporation (FDIC), which provided federal insurance for bank deposits up to $2,500, easing concerns about losing money in case of a bank failure.

User OllieGreen
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