Economic Developments: The situation of Banks and the financial system by 1933 Flashcards
(13 cards)
How many banks failed a year in the 1920s?
600 banks a year
How many banks failed from 1930 to 1933?
5500 banks failed
What was the impact of the Federal Reserve increasing interest rates in 1931?
It caused deflation
How many other financial panics were there after the October 1929 panic?
4 other panics
Between which years in the 1930s did the USA money supply shrink by 1/3?
1930 to 1933
Which years did the 4 other financial panics occur in after October 1929?
1930, 1931, 1932, 1933
How much had production of iron and steel fallen from 1929 to 1930?
Fallen by 60%
How much had industry investment fallen from 1929 to 1930?
Fallen by 90%
What was the NBC and what year was it set up?
National Banking Corporation, set up in 1931
What did the National Banking Corporation do?
It provided banks with money to help support them
Hoiw many times more banks failed in 1932 compared to 1931?
Twice as many banks failed
How much money in loans had Federal Reserve Banks given out by 1929?
$8 billion
How much money did Federal Reserve Banks have in reserve by 1929?
$200 million
