Economic Recovery

Question 1

How many banks shut down as a result of the Wall street crash (between what dates)

Answer 1

Between 1929 and 1933 10,000 banks closed.

Question 2

What act did FDR pass in reaction to the closer of the banks? (Act I am writing about)

Answer 2

Glass-Steagall Act, 1933

Question 3

What did the Glass steagal act aim to do?

Answer 3

Aimed to solve the banking crisis and the put system as well as the economy on a long term footing.

Question 4

What did the glass steagall act of 19– actually put in place?

Answer 4

1933 Put the banking system on a long term footing: commercial banks that reied on small scale depositers were Not allowed in investment banking(less likely to shut down due to failed investments).
Bank officials were Not allowed to take loas from their own banks.
Individual depositers were insured up to $2500

Question 5

Why was this Act of 1933 criticised?

Answer 5

Oops of FDR critised him for adopting Hoover’s policies, realing on officials appointed by hoover to carry them out.

Question 6

Was the glass steagall act successful/why?

Answer 6

Yes, restored faith in Banking system and saved capitalism.