Nationalisation Of Banks

Question 1

What does the nationalisation of banks mean?

Answer 1

The party had control over all the financial resources in the country
—> Redistribute wealth and fund
policies

Question 2

What was Vesenkha?

Answer 2

Supreme economic council of the soviet union
—> Controlled nationalised industry
and economic planning

Question 3

What was effective about the nationalisation of banks?

Answer 3

• Eliminated opposition power
—> dismantled private financial
institutions

• Control of resources
—> fund government policies

• Redistribution of wealth
—> ideological success

Question 4

What was ineffective about the nationalisation of banks?

Answer 4

• Loss of expertise
—> Bankers purged or fled country

• Inflation
—> 400% per month

Economic disruption
—> Abrupt nationalisation caused chaos and inefficiency