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89
What were the two reasons National banks were attractive to depositors? Explain them briefly.
1. Legal reserve requirement - banks had to hold a certain amount of deposits in reserve. This makes depositors more trusting and more willing to deposit.
2. Double liability on stocks - bank can lose double its money on investments it makes with your money, so it has twice the amount to pay you back with (I think this is what it means)
2. Double liability on stocks - bank can lose double its money on investments it makes with your money, so it has twice the amount to pay you back with (I think this is what it means)
Flashcard info:
Author: savhighsmith
Main topic: Economics
Topic: History of Economics
School / Univ.: UGA
City: Athens
Published: 12.10.2010