Which statement best explains how bank failures contributed to the Great Depression?

Question

Social Studies

Gracie Odonnell

13 January, 21:07

Which statement best explains how bank failures contributed to the Great Depression?

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Answers (1)

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Jayvion Nelson · Answer 1

People lost their savings because the government did not insure bank deposits.

Explanation:

Great Depression happened between 1929 and 1939. It doesn't matter if bankrupt provoked depression or depression provoked bankrupt, the money was lost. Many people lost their life savings. These years were horrible years for the economy. Many people left unemployed. Many people lost their jobs. Income had shrunk to a minimum.

Great depression happened because of banks panicked. They didn't know how to deal with people who believed in their security and the possibility that they could have had access to their money anytime.