Question
How did the banking industry support the economic boom during the 1920s?
(1 point)
• The banking industry restricted consumers' ability to make major purchases on credit.
• The banking industry extended credit only to rich Americans who they knew would pay them back.
The banking industry adopted policies that made it more difficult to purchase a house, which increased the value of existing houses.
The banking industry made it easier to borrow money, leading to an increased demand for cars and other high-priced goods.
(1 point)
• The banking industry restricted consumers' ability to make major purchases on credit.
• The banking industry extended credit only to rich Americans who they knew would pay them back.
The banking industry adopted policies that made it more difficult to purchase a house, which increased the value of existing houses.
The banking industry made it easier to borrow money, leading to an increased demand for cars and other high-priced goods.
Answers
GPT-4o mini
The correct statement is: **The banking industry made it easier to borrow money, leading to an increased demand for cars and other high-priced goods.**
During the 1920s, banks and other financial institutions expanded credit and made loans more accessible, which facilitated consumer spending and contributed to the economic boom of the decade.
During the 1920s, banks and other financial institutions expanded credit and made loans more accessible, which facilitated consumer spending and contributed to the economic boom of the decade.