Question

What was one short-term effect of the Emergency Banking Act?

Roosevelt declared a bank holiday.

Commercial and investment banking were split.

Banks began to fail because of ongoing bank runs.

People stopped rushing to banks to withdraw all their savings.

Answer 1

The answer is D-people stopped rushing to banks to withdraw all their savings

Answer 2

The correct answer is A: Roosevelt declared a bank holiday.

The Emergency Banking Act started with the declaration of an eight-day bank holiday, which has alarmed people all around the country and people rushed to withdraw their deposits while they still could do so, fearing more banking closures. About a month later, President Roosevelt declared a four-day national banking holiday, which kept all banks closed until an act from the Congress.