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What would happen if everyone withdrew their money from the banks?
WiRed174
If everybody withdraw their money from bank there will be a lot of rubbery and scarce i employmen because bank wont be able to hire people
BUT IT IS NOT POSSIBLE FOR EVERYBODY TO WITHDRAW THEIR MONEY
Wiki User
∙ 12y ago
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What did roosevelt do to get Americans to put their money back in the banks?
He set up the entire social security system ... he promised everyone a benefit from their social security if they put their money back in the banks...
Why does the fed attempt to make banks both safe and sound?
The fed attempts to make banks safe and sound because of what happened during the great depression, when the stock market crashed the banks had no way of insuring the people that there money was save to stay in the banks, and with that in mind thousands of people went and withdrew their life savings and caused the banks to have to shut down. and in doing so now they can provide people with the ability to sleep well knowing that there money is save
How do banks benefit from people with savings deposit?
The banks loan out the money on deposit at higher rates of interest than they pay the depositors. Since most people keep their savings on deposit for long periods, the banks are able to do this. If everyone came at once and asked for their money, the bank would fail.
How did the creation of the Federal Deposit Insurance Corporation (FDIC) help end the banking crisis?
It's important to understand that banks don't hold on to all of the money that is deposited at them: they loan it out, and then some of the interest from those loans goes back to the deposit holders. They can do this because, under normal circumstances, not everyone is going to withdraw all of their money at once. By the time the bank needs to give people their money back, they'll have made it back from loans. But during the Depression, people were withdrawing so much money from banks that the banks ran out of money. That happening caused people to panic and withdraw money from banks, because they saw that it wasn't safe there, and that in turn caused more banks to collapse. The FDIC essentially exists to ensure that this can't happen. As the name implies, they insure your deposit. That is to say that if you try to withdraw money from a bank and the bank doesn't have it, then the FDIC covers it. Because of this, people felt safe putting their money into banks again.
How did the creation of the Federal Deposit Insurance Corporation (FDIC) help end the banking crisis?
It's important to understand that banks don't hold on to all of the money that is deposited at them: they loan it out, and then some of the interest from those loans goes back to the deposit holders. They can do this because, under normal circumstances, not everyone is going to withdraw all of their money at once. By the time the bank needs to give people their money back, they'll have made it back from loans. But during the Depression, people were withdrawing so much money from banks that the banks ran out of money. That happening caused people to panic and withdraw money from banks, because they saw that it wasn't safe there, and that in turn caused more banks to collapse. The FDIC essentially exists to ensure that this can't happen. As the name implies, they insure your deposit. That is to say that if you try to withdraw money from a bank and the bank doesn't have it, then the FDIC covers it. Because of this, people felt safe putting their money into banks again.
Why did the stock market crash take place?
Too many people got money from their stocks and the banks were running out of money. Everyone wanted their money, but the banks didn't give it to them. This resulted in everybody losing their money.
Which chain of events correctly accounts for the conditions described in the excerpt?
The Stock market crash caused a panic. People rushed to pull money out of banks. Banks did not have enough money for everyone.
What did roosevelt do to get Americans to put their money back in the banks?
He set up the entire social security system ... he promised everyone a benefit from their social security if they put their money back in the banks...
How many people used emergency money in the great depression?
That's part of the point of a Depression. No one had "emergency money", or very few people. Banks of which there were literally hundreds at the time shut down as people withdrew all their (cash) money.
What describes the chain of events that followed the stock market crash of 1929?
after the crash, frightened depositors withdrew their money and banks failed. Companies fired worker and closed factories.--novanet
What describes the chain of events the followed the stock market crash of 1929?
after the crash, frightened depositors withdrew their money and banks failed. Companies fired worker and closed factories.--novanet
What will happen if there was no money or bartering?
Everyone would have to produce their own goods.
Why did the first bank of the US fail?
Banks loan your money out and then collect a profit from it. During the Great Depression people couldn't pay their loans back, which caused the bank's money supply to drop. Then when someone wanted to take their money out of the bank, it wasn't there. The news would spread and cause a panic. Panics are when everyone runs to their banks to take out their money. These runs on the bank cause it to go bankrupt and fail.
Why does the fed attempt to make banks both safe and sound?
The fed attempts to make banks safe and sound because of what happened during the great depression, when the stock market crashed the banks had no way of insuring the people that there money was save to stay in the banks, and with that in mind thousands of people went and withdrew their life savings and caused the banks to have to shut down. and in doing so now they can provide people with the ability to sleep well knowing that there money is save
What did Jackson try to do after his reelection in 1832?
tried to replace bank notes with hard money withdrew funds from the Bank of the United States and put them in state banks
Does withdrawing money from an ATM show the location of where you withdrew the money at?
Yes.
Is recession the government stealing your money?
No , but that has contributed to it. Originally massive bank were lending to corps and businesses ( that is the money you put in the bank ) and all of a sudden , everyone wants their money back. You can see what's going to happen... The banks don't have enough money to give to people , they go out of business etc Businesses are going out of business because they don't have a bank to lend from. Everyone has less money and the government is still stealing money from us. Like the VAT cuts makes a difference. Matty
