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It also passed the Banking Act of 1933, which strengthened the Federal Reserve System, established the Federal Deposit Insurance Corporation (FDIC), and insured individual deposits up to $5,000 (777). These legislative acts encouraged the public to once again trust their banks, and to deposit their money back in them instead of hiding it at home in or under the proverbial mattress...
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These legislative acts encouraged the public to once again trust their banks, and to deposit their money back in them instead of hiding it at home in or under the proverbial mattress. The allowance for insurance limits was increased greatly, later on, as a direct result of this regained trust and the consequentially larger sums of money being reintroduced into the banking system...
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