What did the Glass-Steagall Act do?

A.) It provided for the creation of a federal bank to act as the banker to banks.

B.) It provided for the creation of jobs to unemployed youths.

C.) It provided for added funding to the arts and education.

D.) It provided mortgages to young people looking for a home.

Question

What did the Glass-Steagall Act do?

A.) It provided for the creation of a federal bank to act as the banker to banks.

B.) It provided for the creation of jobs to unemployed youths.

C.) It provided for added funding to the arts and education.

D.) It provided mortgages to young people looking for a home.

lieutenantgeneral · Answer

The Glass-Steagall Act, also known as the Banking Act of 1933 (48 Stat. 162), was passed by Congress in 1933 and prohibits commercial banks from engaging in the investment business. It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression.