What caused banks to fail during the depression?

Question

1.There were more banks than there were depositors.
2.More people decided to keep their money in cash at home.
3.The government lowered tariffs, reducing barriers to global trade.
4.A large number of people withdrew their money from banks at the same time.

Answer 1

5.Banks made risky investments and loans that were not backed by sufficient collateral.
6.Many banks were overleveraged, meaning they had borrowed too much money relative to their assets.
7.The stock market crash of 1929 led to a decline in consumer and investor confidence, causing a panic and bank runs.
8.There was a lack of regulation and oversight of the banking industry, allowing for risky behavior and fraudulent practices.
9.The Federal Reserve's tight monetary policy exacerbated the economic downturn by restricting the money supply and making it harder for banks to meet their obligations.

Answer 2

1 2 3 or 4

Answer 3

4. A large number of people withdrew their money from banks at the same time.