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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People didn’t pay back loans
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People stopped liking banks
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They spent it on company supplies
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They paid their workers too much
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Detailed explanation-1: -Nearly all banks in the United States are FDIC-insured, which means even if a bank were to fail, your money is protected. The FDIC insures each bank account up to $250, 000 per depositor per account.
Detailed explanation-2: -Banks can fail for a variety of reasons including undercapitalization, liquidity, safety and soundness, and fraud.
Detailed explanation-3: -The most common cause of bank failure occurs when the value of the bank’s assets falls to below the market value of the bank’s liabilities, which are the bank’s obligations to creditors and depositors. This might happen because the bank loses too much on its investments.
Detailed explanation-4: -The receivership of Washington Mutual Bank by federal regulators on September 26, 2008, was the largest bank failure in U.S. history. Regulators simultaneously brokered the sale of most of WaMu’s assets to JPMorgan Chase, which planned to write down the value of Washington Mutual’s loans at least $31 billion.