(The spread of the Depression, 1929-1932) Problems with credit & banking Flashcards
1
Q
How many banks failed between 1929-1932?
A
Over 10,000
2
Q
How did the USA change?
A
Became a land of cash transactions as mistrust in banks and economy grew.
3
Q
When does a ‘bank-run’ occur?
Apply this to the Depression.
A
When lots of bank customers withdraw deposits simultaneously over concerns of the bank’s solvency.
By 1933, this closed down thousands of banks.
4
Q
What had happened by inauguration day on March 4th, 1933?
2
A
Every US state ordered banks to close at the end of the 4th wave of banking panics.
The US Treasury didn’t have enough cash to pay all government workers.
