All depository institutions in the United States are required by law to hold reserves based on a percentage of their transaction deposits. These reserves consist of cash in their vaults and balances in accounts at Federal Reserve Banks. Some financial institutions use their accounts at Reserve B...

The 1929 Stock Market CrashIn early 1928 the Dow Jones Average went from a low of 191 early in the year, to a high of 300 in December of 1928 and peaked at 381 in September of 1929. (1929…) It was anticipated that the increases in earnings and dividends would continue. (1929…) The price ...