Question

The essential goal of Franklin Roosevelt's "managed currency" financial policy was to

a. force the Federal Reserve Board to lower interest rates.
b. raise the dollar's value against the British pound and German mark.
c. take the United States off the gold standard.
d. stimulate inflation.
e. restore confidence in banks.

Answer 1

D

Step-by-step explanation:

The essential goal of Franklin Roosevelt's "managed currency" financial policy was to stimulate inflation.

Franklin D. Roosevelt's monetary policies helped to pull the United States out of the Great Depression. He first of all reduced the gold content of the dollar, abandoned the promise to convert dollars to gold, and abrogated the gold clause on all current, past, and future contracts. In his administration he expanded government spending, financed that spending with nominal bonds, and convinced people that the bonds would not be fully backed by future taxes until the economy recovered.