THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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90, 000
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1 Million
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10, 000
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19, 000
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Detailed explanation-1: -The Depression In all, 9, 000 banks failed–taking with them $7 billion in depositors’ assets. And in the 1930s there was no such thing as deposit insurance–this was a New Deal reform. When a bank failed the depositors were simply left without a penny.
Detailed explanation-2: -Between 1929 and 1933, the quantity of goods and services produced in the United States fell by one-third, the unemployment rate soared to 25 percent of the labor force, the stock market lost 80 percent of its value and some 7, 000 banks failed.
Detailed explanation-3: -The effect was a liquidity crisis that caused the failure of 2, 293 banks in 1931, or nearly four times the average annual number of failures during the 1920s.
Detailed explanation-4: -Banks began to fail with the general economic downturn of 1920. For the United States as a whole, 505 banks failed in 1921. Failures continued to rise in the early twenties, averaging over 680 from 1923 to 1929 and peaking in 1926 at more than 950 failures.