Question

How did the banking industry support the economic boom during the 1920s?

(1 point)
Responses

The banking industry restricted consumers’ ability to make major purchases on credit.

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 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 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.

Answer 1

The banking industry made it easier to borrow money, leading to an increased demand for cars and other high-priced goods.

Explanation: Banks expanded consumer credit and installment plans in the 1920s, making durable goods like automobiles affordable to more Americans and fueling consumer spending and the economic boom.