Question

HELP: Which of the following problems played the most important role in the collapse of Penn Square Bank and the creation of aboom and bust economy in the 1970s?

A. Rising oil supplies
B. Cheaper cattle prices
C. Changes oil prices
D. Higher wheat prices
(Please don't put the same answer of someone else unless you actually know its that answer).

Answer 1

its C or D

Step-by-step explanation:

It could be c because they did mention that the oil prices would change, there was not enough money, this situation is like the great depression, a lot of things went down but prices went up.

It could be D because for the same reason, peoples salaries went down but people that sell stuff (businesses) there prices went up, for example farmers with wheat, they put the prices higher for the same reason, they werent gaining the same money they use to earn. If that makes sense :(

Answer 2

Answer: C. Changes oil prices

Step-by-step explanation:

The failure, which harmed the entire banking sector of the United States, occurred in 1982. Penn Square Bank has financed major oil exploration projects for potential oil fields and financed the extraction of that derivative from existing wells. The bank achieved success by lending and eventually selling its stake to other banks. The fall in the price of oil in 1981 was catastrophic for the bank's operations. The savers withdrew over $ 50 million in the spring of 1982, and the bank did not survive the summer of the same year.