Asked by Kaileigh
How were farmers and banks connected in the 1930s?
Banks made money, and then farmers lost their farms.
Banks lost money, and then farmers lost their farms.
Farmers expanded their farms, and then banks made money.
Farmers lost their farms, and then banks lost money.
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Answered by
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Farmers lost their farms, and then banks lost money.
Explanation: During the 1930s low crop prices and the Dust Bowl forced many farmers to default on loans and face foreclosure. Because banks had made those farm loans and held farm mortgages, the wave of farm failures caused large losses for banks and contributed to many bank failures.
Explanation: During the 1930s low crop prices and the Dust Bowl forced many farmers to default on loans and face foreclosure. Because banks had made those farm loans and held farm mortgages, the wave of farm failures caused large losses for banks and contributed to many bank failures.
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