THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Why did so many banks fail during the early years of the Great Depression?
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People panicked and went on bank runs, depleting deposits
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The banks lost their investments in the stock market
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The federal government did not insure deposits
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All choices are correct
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Explanation:
Detailed explanation-1: -Deflation increased the real burden of debt and left many firms and households with too little income to repay their loans. Bankruptcies and defaults increased, which caused thousands of banks to fail.
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