7
QuizMultiple Choice

American Life in the Great Depression

Question 7 • [HSSUS] US History, Sem 1 (26-27)

After the stock market crash,

Answer
A
banks had plenty of cash to repay depositors.
B
banks loaned more money to Americans.
C
Americans calmly invested more in the stock market.
D
Americans panicked and rushed to banks for their money.

Explanation

After the stock market crash, many Americans feared their banks might fail and lose their savings. They rushed to withdraw their money, creating bank runs. Banks often did not have enough cash on hand to repay all depositors at once, so choice D is correct.

AI-written and checked against the verified answer.

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