In 1929, the global financial system was based on the gold standard and extremely vulnerable to any financial downturn escalating quickly to catastrophic economic meltdown. as the financial markets collapsed, thousands of banks collapsed as people withdrew their savings in the fear that paper money would no longer be backed or redeemed for gold.

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

answer; capital structure decision;