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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tax people and decide how you should spend your money
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open businesses and provide labor
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provide loans and help people invest their money
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produce goods and services people need
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Detailed explanation-1: -Its primary function is to safeguard depositors’ assets and make loans to individuals and businesses. Banks are regulated by the federal government, and sometimes state governments, to try to keep them from taking on too much risk and imperiling the economy.
Detailed explanation-2: -Although banks do many things, their primary role is to take in funds-called deposits-from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).
Detailed explanation-3: -The banks mediate between those who have surplus money and those who need money. Banks provide cheap loans to a large number of people. They boost the industry also by providing cheap loans to industrialists. Banks are the backbone of the country’s trade.
Detailed explanation-4: -Financial Security: Indian banking system provides financial security to the people by providing loans at competitive rates, paying reliable remittance services, etc. It helps people save their money and invest it in different financial instruments like Government securities, long-term bonds, etc.