What was the first action Franklin Roosevelt took to address the nation’s economic crisis?

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Question: What was the first action Franklin Roosevelt took to address the nation’s economic crisis?

Option 1: 'Put people to work in the WPA' — This program (Works Progress Administration) was part of the New Deal, but it did not occur as the very first move. It came after some early banking actions and other reforms aimed at stabilizing the economy.

Option 2: 'Ended Prohibition' — Repeal of Prohibition (21st Amendment) happened later in 1933, but it was not Roosevelt’s initial step to address the crisis. The move to end Prohibition was influential for revenue and social policy, yet it did not directly constitute the first crisis-response action.

Option 3: 'Gave states money for relief' — Providing funds to states for relief or public welfare programs was part of broader relief efforts during the New Deal era, but it was not the first immediate executive action undertaken to calm bank runs and restore confidence.

Option 4: 'Closed all banks in a banking holiday' — This was the very first bold move in Roosevelt’s early 1933 response. He declared a four-day banking holiday to close banks, prevent runs, and reassess solvency, which allowed the government to reorganize the banking system and restore public trust as a foundational step in stabilizing the economy.

In evaluating the options, consider the sequence of actions during the onset of the New Deal: the banking holiday was implemented promptly to halt runs and create space for the first wave of reforms, whereas the other options represent later or broader initiatives that followed after the initial stabilization measure.

HIST 1700-004 Fall 2025 Final Exam

What was the first action Franklin Roosevelt took to address the nation’s economic crisis?

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In 1933, two days after he took office, President Franklin Roosevelt

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