Banking in the early 20th century

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Emily Holmes

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Banking in the Early 20 th Century Economics 2

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After World War II ended in 1945, Japan made a new start toward economic reconstruction as a democratic and pacifist state. Thanks to its highly educated and abundant labor force and to the concentration of capital and resources in certain key industries, such as electric power and steel, Japan succeeded in recovering from the ruins of war and achieving industrialization during the 1950s and 1960s.

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What are the functions of Federal Reserve issue federal reserve notes set reserve payment lend money to financial institutions act as fiscal agent for the federal government supervise operations of the banks regulate supply of money What happens during Financial Crisis of 2007 and 2008? the country experienced worst financial crisis since great depression What were the causes? Mortgage default crisis Why? government programs Solution Federal performs all the acitvities: issue federal reserve notes,set reserve payment, lend money to financial institutions, act as fiscal agent for the federal government, supervise operations of the banks and regulate supply of money. during the period the subprime crisis was happend in US, where majority of the banks were suffered to recover loans on houses. and lakhs of people lost their jobs and strugled to survive. major banks like Lehman brothers, motors companies like GM were pur bankruptcy. notes and coins both can be printed by Federa Reserve only..

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