THE ROARING 20S 1920 1929
1920S AMERICAN CULTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bank Crisis
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Black Tuesday
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Stock Market Crash
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New Deal
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Detailed explanation-1: -A bank run occurs when large groups of depositors withdraw their money from banks simultaneously based on fears that the institution will become insolvent. With more people withdrawing money, banks will use up their cash reserves and ultimately end up defaulting.
Detailed explanation-2: -People rushing to withdraw their money from banks caused many bank failures in the United States and elsewhere in 1930–33, decreasing the amount of money available for loans. Also, people who had taken out loans were unable to pay back the banks. Encyclopædia Britannica, Inc.
Detailed explanation-3: -What Is a Withdrawal? A withdrawal involves removing funds from a bank account, savings plan, pension, or trust.
Detailed explanation-4: -Cash reserve ratio of banks will also decrease drastically. It will lead to a complete collapse of the financial system.