Question
The runs on banks during the Great Depression worsened the country's economic situation because the bank runs Responses A caused banking institutions to collect funds from the government.caused banking institutions to collect funds from the government. B caused overseas investors to worry about giving money to America.caused overseas investors to worry about giving money to America. C caused the government to stop reimbursing currency for gold bullion.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
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 the failure of many financial institutions, which reduced the overall money supply and worsened the economic crisis. When banks closed, people lost their savings, which further decreased consumer spending and investment, exacerbating the economic downturn.
During the Great Depression, bank runs led to the failure of many financial institutions, which reduced the overall money supply and worsened the economic crisis. When banks closed, people lost their savings, which further decreased consumer spending and investment, exacerbating the economic downturn.