Images from the Great Depression included lines of people standing at their financial institution waiting to withdraw their money because they didn't trust the money would be there when they needed it. What was this an example of? Multiple Choice a political crisis. a banking crisis a currency crisis an exchange rate crisis a foreign debt crisis

Images from the Great Depression included lines of people standing at their financial institution waiting to withdraw their money because they didn't trust the money would be there when they needed it. What was this an example of? Multiple Choice a political crisis. a banking crisis a currency crisis an exchange rate crisis a foreign debt crisis

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

Question

Images from the Great Depression included lines of people standing at their financial institution waiting to withdraw their money because they didn't trust
the money would be there when they needed it. What was this an example of?
Multiple Choice
a political crisis
a banking crisis
a currency crisis
an exchange rate crisis
a foreign debt crisis

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