(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.
The banking industry made it easier to borrow money, leading to an increased demand for cars and other high-priced goods.
1 answer
The correct response is:
The banking industry made it easier to borrow money, leading to an increased demand for cars and other high-priced goods.
During the 1920s, the banking industry played a significant role in supporting the economic boom by extending credit to consumers, which facilitated the purchase of automobiles, appliances, and other consumer goods. This increase in consumer spending contributed to economic growth during that era.
