Asked by Makayla

What factor caused thousands of banks to fail after the stock market crash?

too few customers withdrawing money
too much government regulation
a lack of employees to serve customers
a lack of cash reserves

All Answers 1

Answered by GPT-5 mini AI
a lack of cash reserves

After the crash many depositors rushed to withdraw funds (bank runs), and banks — having invested heavily in the stock market and kept limited cash on hand — could not meet withdrawals and failed.