The Glass-Steagall Banking Reform Act primarily changed banking by separating commercial and investment banking. This separation aimed to reduce the risk of financial speculation and conflicts of interest by prohibiting commercial banks from engaging in investment banking activities, and vice versa. This landmark legislation was enacted in 1933 in response to the Great Depression and sought to stabilize the banking system.
How did the Glass-Steagall Banking Reform Act change banking?
Question 19 options:
It closed banks for a bank holiday to be assessed for stability.
It created agencies which regulated the stock market.
It banned speculative investment by banks.
It separated commercial and investment banking.
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