President Franklin D. Roosevelt's first action regarding the run on banks was to
(a) close all banks.
(b) increase the money supply.
(c) prohibit bank foreclosures.
(d) provide federal guarantees to depositors.
Question 2
During the New Deal, the structure of capitalism in the U.S. changed forever in each of the following areas except for one. Which one?
(a) The relation between government and markets changed in the sense that government interventions of one sort or another occurred.
(b) The Federal Reserve System began to control actively the money supply and interest rates to control overall levels of consumer and business spending in the economy.
(c) Government spending rose and was intended to serve as an economic stimulus, similar to private investment spending.
(d) Individual households began to take greater charge over their own economic welfare with no government assistance.
Joseph Banks
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