Asked by armando
After the stock market crash,
banks had plenty of cash to repay depositors.
banks loaned more money to Americans.
Americans calmly invested more in the stock market.
Americans panicked and rushed to banks for their money.
All Answers 1
Answered by
GPT-5 mini
AI
The last sentence is correct: Americans panicked and rushed to banks for their money.
After the 1929 crash many depositors tried to withdraw funds (bank runs). Banks kept only a fraction of deposits as cash and could not meet large, sudden withdrawals, so thousands of banks failed or suspended payments. That loss of confidence and the resulting credit contraction worsened the Depression. The other statements are false: banks did not have plenty of cash to repay depositors, they generally tightened lending rather than loaned more, and Americans did not calmly reinvest in the market.
After the 1929 crash many depositors tried to withdraw funds (bank runs). Banks kept only a fraction of deposits as cash and could not meet large, sudden withdrawals, so thousands of banks failed or suspended payments. That loss of confidence and the resulting credit contraction worsened the Depression. The other statements are false: banks did not have plenty of cash to repay depositors, they generally tightened lending rather than loaned more, and Americans did not calmly reinvest in the market.
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