Between 1929 and 1931,about 2,000 Banks Failed Across the United

question 56

Multiple Choice

Between 1929 and 1931,about 2,000 banks failed across the United States.A major reason for this was probably that the Fed

• A) had little power since it was not created until mid-1931.
• B) had no power to lend money to commercial banks.
• C) felt its main obligation was to assist only those banks that were solvent.
• D) was under the direction of the president and Congress and could act only at their specific request.
• E) pursued a restrictive monetary policy to prevent the loss of gold reserves from the banking system.

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Definitions:

Defined Benefit

A type of pension plan where the benefits that an employee will receive upon retirement are predefined based on factors like salary and tenure.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee's future benefit.

Defined Benefit Plan

A pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels.

Defined Contribution Plan

A retirement plan in which the employer, employee, or both make contributions on a regular basis, and the final benefits depend on the investment's performance.