Great Depression 2 video

Danny does his financial "homework".  He researches and finds out that not only is Amazon very profitable, but they are looking to expand into India (a country with a huge population).  True or false- Danny is a speculator.

• True

• False

True or false.  Often falling stock prices causes people to sell their stock which causes stock prices to fall ever further.

• True

• False

True or false - The stock market crash was a major cause of the Great Depression

• True 

• False

True or false - Customers can always withdraw all of the money that they have in a back on any given day.

• True

• False

Why can't people withdraw all of their money when they please?

• Banks take our money and loan it out and invest it.

• Banks want to give us time to consider whether large withdrawals are wise.

• Banks are greedy.

What is the real reason why banks are so important?

• They keep our money safe.

• They provide us with interest on our savings.

• They provide us with loans so that new businesses can be created.

If Alexis doesn't get a loan from a bank, it hurts

• Alexis

• Alexis and hairdressers who were never hired.

• A wide range of workers beyond just those working in the hair care industry.

The "big picture" of banks not having money to loan is (choose the best one)

• no new businesses

• no new jobs

• a cycle of fewer businesses being opened, fewer jobs created, people buying less and layoffs.

A bank run is when

• banks are expanding and have profits that are economically "running".

• customers lose confidence in their banks and all try to withdraw their deposits at once.

• bankers have too much spicy food.

Leading up to the Great Depression, 

• the wealth of Americans did not vary much.

• the wealth of Americans varied greatly (remember the Gilded Age?)