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The great depression: key events

The great depression: key events. The crash of 1929. Late October 1929 “Black Tuesday” (October 29, 1929) Stock prices collapsed Billions of dollars lost Marks the beginning of the Great Depression. Bank panics. In your notebook: How do banks make money?. How banking works.

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The great depression: key events

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  1. The great depression: key events

  2. The crash of 1929 • Late October 1929 • “Black Tuesday” (October 29, 1929) • Stock prices collapsed • Billions of dollars lost • Marks the beginning of the Great Depression

  3. Bank panics • In your notebook: How do banks make money?

  4. How banking works • Banks make money by lending out deposits • Banks hold a certain percentage of deposits in cash – this is the reserve • At any given time, the money supply is greater than what banks have in cash

  5. Bank runs in the great depression • Starting in 1930, people panicked and pulled money out of banks • This forced banks to call in loans • Consequences • Bank failures • Contraction in the money supply

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