Due to Banking Regulations, Banks in the Early Part of the Twentieth

question 56

Multiple Choice

Due to banking regulations, banks in the early part of the twentieth century were not allowed to nationalize and thus many banks had most of their investments tied up in the agricultural sector. The Dust Bowl and retaliatory tariffs caused many banks to fail, particularly during the Great Depression. Ignoring legal and cultural restrictions, what piece of advice would have served banks very well during this time?

• A) employing compound returns
• B) diversification
• C) having more low-risk investments
• D) reducing the fees the banks charged on checking accounts

---

Definitions:

Commuting

The action of traveling from one's home to their place of work or study and back again.

Systems Development

The process of creating and maintaining information systems, including hardware, software, network, and data components, tailored to meet organizational needs.

Budgeting

The process of creating a plan to spend your money, allocating specific amounts to various needs, savings, and desires.

Reporting

The method of arranging data into summary reports to track the performance of various sectors within a business.