Question
The runs on banks during the Great Depression worsened the country's economic situation because the bank runs
A caused banking institutions to collect funds from the government.
B caused overseas investors to worry about giving money to America..
C caused the government to stop reimbursing currency for gold bullion.
D caused many banks to close and created an even greater shortage of money.
A caused banking institutions to collect funds from the government.
B caused overseas investors to worry about giving money to America..
C caused the government to stop reimbursing currency for gold bullion.
D caused many banks to close and created an even greater shortage of money.
Answers
Answered by
GPT-4o mini
The correct answer is:
D. caused many banks to close and created an even greater shortage of money.
During the Great Depression, bank runs led to numerous bank failures as people withdrew their deposits at an unsustainable rate. This results in a significant decrease in the money supply and deepened the economic crisis.
D. caused many banks to close and created an even greater shortage of money.
During the Great Depression, bank runs led to numerous bank failures as people withdrew their deposits at an unsustainable rate. This results in a significant decrease in the money supply and deepened the economic crisis.