The Aspect of the Second Banking Crisis of the 1930s

question 13

Multiple Choice

The aspect of the Second Banking Crisis of the 1930s that distinguished it from the First Banking Crisis was that during the second crisis ___.

• A) the Federal Reserve finally decided to act as lender of last resort.
• B) the stock market boom finally came to an end with the crash.
• C) banks in all regions of the country failed.
• D) President Roosevelt asked Congress to establish Federal deposit insurance.

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Definitions:

Compounded Monthly

Interest calculation method where the interest amount is added to the principal sum so that the next interest calculation includes interest upon interest.

Principal Paid

The portion of a loan payment that goes toward reducing the original amount borrowed, distinct from interest or other fees.

Extra Payments

Additional payments made over the required minimum payment on debts like loans or mortgages, aimed at reducing the principal balance more quickly.

Total Interest

The total amount of interest paid over the lifetime of a loan.