and offering little guidance.
He focused predominantly on the banking crisis and virtually ignored other issues such as
commodity prices and the relationship between unions and management.
He took an active approach, trying out a series of “experiments” with the guidance of specialists
such as professors, economists, and social workers.
He gave a series of inspiring speeches but was hesitant to pass any legislation until after the first
100 days, the only point at which he felt issues could be properly assessed.
6. What did Roosevelt do at the outset of his presidency to deal with the banking crisis?
He pushed through a bank bailout bill worth more than $7 billion.
He used his emergency powers to nationalize the banking industry.
He put strict limits on the issuance of paper currency.
He ordered the Federal Reserve Board to lower interest rates.
He declared a bank holiday, shutting the banks down briefly.
7. What was one of the main purposes of the Glass-Steagall Banking Act of 1933?
It reduced the chance that another panic would occur by creating the Federal Deposit Insurance
Corporation (FDIC) to insure customer bank accounts up to a certain amount of money.
It merged commercial banking and investment banking so that the two were indistinguishable, and
banks were more likely to invest in the savings of depositors in the stock market.
It took away the Federal Reserve Board’s authority to intervene in future financial crises and
thereby perpetuated the current banking crisis.
It required that all countries, starting with the United States, adopt the gold standard so that the
president could decrease the money supply.
It created the Civilian Conservation Corps (CCC), which gave many struggling workers office jobs
in the banking industry and drastically improved unemployment rates.
8. What was the significance of the Securities and Exchange Commission?
The Securities and Exchange Commission marked a departure from the legislation of previous
presidencies in that it operated entirely at the state level and received little federal oversight so that
the federal government could focus on the creation of jobs.
The Securities and Exchange Commission took away the requirement that all corporations that
offer stock for public sale disclose the relevant information about the company, which would in
turn make buyers of stock less confident about their purchases and purchase less.
Whereas there had been little government oversight of the stocks and bonds industry prior to the
Great Crash of 1929, the Securities and Exchange Commission was one of the first major pieces of
federal legislation involving governance of the issuance and trading of stocks and bonds.
Because Prohibition had been so effectively enforced and had resulted in the exchange of other
nonalcoholic goods to replace alcohol, the Securities and Exchange Commission reinstated
Prohibition temporarily until the state of the economy was back on track.
The Securities and Exchange Commission focused on raising the wages of government workers to
make such jobs more appealing to those who were struggling economically due to the Depression
but who refused to work for the government out of principle.
9. What was the main purpose of the Civilian Conservation Corps?