 Financial panics during the 1800’s  people feared losing their money in the bank  Withdrew $ from the bank.

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Presentation transcript:

 Financial panics during the 1800’s  people feared losing their money in the bank  Withdrew $ from the bank

 Panics led to bank’s and businesses collapsing  Depression and recession triggered (high unemployment)

 Brought stability to the banking system and prevented financial panics  Created 13 Central Banks (Federal Reserve)  The FED Lends money to member banks like PNC and TD Bank at low interest rates  PNC and TD bank lend money to the public at higher interest rates  Lending leads to spending, sparking an economy and leading to more hiring

 People feel safe to put their money in the bank and keep it there

 Graduated income tax (Underwood Tariff Act)