Major economic crises such as the Great Depression of the 1930s, led to expansion of the Feds role in the U.S. banking system and with managing the U.S. economy.

MONEY

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Major economic crises such as the Great Depression of the 1930’s, led to expansion of the Fed’s role in the U.S. banking system and with managing the U.S. economy.

A	true
B	false
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.

Detailed explanation-2: -The Depression, set off by the October 1929 Wall Street stock market crash, hit the New South Wales economy with great severity. Unemployment, already high at 10% in mid 1929, was 21% by mid 1930 and rising, hitting almost 32% in mid-1932.

Detailed explanation-3: -The Depression Many of the small banks had lent large portions of their assets for stock market speculation and were virtually put out of business overnight when the market crashed. In all, 9, 000 banks failed–taking with them $7 billion in depositors’ assets.

Detailed explanation-4: -Banks Extended Too Much Credit New businesses-making new products like automobiles, radios and refrigerators-borrowed to support non-stop expansion in output. They kept borrowing and spending even as business inventories soared (300 percent between 1928 and 1929 alone) and Americans’ wages stagnated.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY