First New Deal: Banking and Finance | Student Handouts
 
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First New Deal: Banking and Finance
 
 
When Franklin D. Roosevelt took the presidential oath, the banking and credit system of the nation was in a state of paralysis. With astonishing rapidity the nation's banks were first closed--and then reopened only if they were solvent. The administration adopted a policy of moderate currency inflation to start an upward movement in commodity prices and to afford some relief to debtors. New governmental agencies brought generous credit facilities to industry and agriculture. The Federal Deposit Insurance Corporation (FDIC) insured savings-bank deposits up to $5,000. Federal regulations were imposed upon the sale of securities on the stock exchange.
 
 
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Click here to print this worksheet. Answer Key: 1. B - False; 2. C - firm; 3. Federal Deposit Insurance Corporation (FDIC); 4. B - False; 5. $5000. For our free worksheets and more on the United States in the Great Depression, click here.

 
 
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