26. During the Great Depression New Deal pollcymakers came up with mortgage (home loans) and consumer lending pollcles that convlnced commerclal banks that: Consumer credit could be profitable Consumer credit was not a profitable industry They would not be able to compete with loan sharks in the industry of consumer lending Consumers would not be willing to use credit, since borrowing money for large purchases had not previously been an option for the middle class

## Step 1<br />The question is about the New Deal policies during the Great Depression and the impact they had on commercial banks' perception of consumer credit. The New Deal was a series of programs and policies implemented by President Franklin D. Roosevelt in the 1930s to combat the effects of the Great Depression.<br /><br />## Step 2<br />The New Deal policies included mortgage and consumer lending policies. These policies were designed to stimulate the economy and provide relief to the American people.<br /><br />## Step 3<br />The New Deal policies convinced commercial banks that consumer credit could be profitable. This is because the policies provided a framework for banks to lend money to consumers, which in turn could generate profits for the banks.