Pease mark if the following statement is true or false. (U2.1) TEKS \( -16(B) \) One of the most significant impacts of the Great Depression was the eroding peoples' confidence in America's banking system. (1 point) True False

Absolutely true! The Great Depression, starting in 1929, was a financial disaster that shattered people's faith in banks. As banks failed, customers lost their savings, leading to a widespread panic. This lack of trust prompted the establishment of regulatory measures, including the Federal Deposit Insurance Corporation (FDIC) in 1933, which aimed to restore confidence in the banking system by insuring deposits. Moreover, the ripple effects weren't just limited to banks; businesses failed, unemployment soared, and families experienced hardships that impacted generations. This period fundamentally changed the relationship between the government and the economy, laying the groundwork for modern economic protections!