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Rama09 [41]
3 years ago
8

How did the stock market collapse affect banks

History
2 answers:
Alina [70]3 years ago
6 0
The Stock Market had false prices that lured people into buying stocks thinking that they were getting rich for a ridiculously cheap price. However, these people were given loans from the bank, so they would take out money from the bank and eventually have to pay it back. However, when the stock market crashed, people lost their life's savings from the banks because the banks loaned it out to all the people buying stocks. This caused many banks to shut down, until FDR became president and called for a "Bank Holiday" in which all banks were shut down until they were proven finacially stable to have people put their money in them again.
Aleksandr-060686 [28]3 years ago
5 0
The banks need the stock market in order to stay open.
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Why he should
-to show that the government is not weak
-to highlight the first time in the new government that troops are used to help regain control and settle people down
-the whiskey rebellion was one of the first major tests of the authority of the government and it was important to show the authority.
-it helped to calm the people down, and stop the violence after

Why he shouldn’t
-the people rebelled against the British because of taxation and as well troops coming into them, so it could start more things
-you want to listen to the people, so you don’t get overthrown/ start a new revolution
-even though money was needed for taxes and paying off debts, the target on whiskey was a mistake that impacted small farmers
-even though Washington used the troops to show authority of the new government, many will argue that he should have not used them that soon after being a new country and new form of government. As this could cause more divide between the people and the two parties that were already starting.
-the two parties being the federalists, and the democratic republicans.
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Answer:

C. European nations wanted monopoly control of markets and resources

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<u>The other options are not true as the free trade was already a very known concept and the one that is very consistent with the capitalist theory. European nations also had plenty of goods to import from Africa and Asia, starting with materials like ivory and silk, to spices, food, etc. </u>

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