4
QuizMultiple Choice

Boom and Bust

Question 4 • [HSSUS] US History, Sem 1 (26-27)

When banks closed as a result of the financial crisis of the Great Depression, depositors

Answer
A
were given stock shares instead of cash in compensation.
B
could retrieve the money from their accounts before closure.
C
lost any savings they had kept at a closed bank.
D
could recover their savings from the government.

Explanation

Before federal deposit insurance was established, bank deposits were not guaranteed by the government. When a bank failed during the Great Depression, depositors could lose the money they had kept there. Therefore, the correct choice is “lost any savings they had kept at a closed bank.”

AI-written and checked against the verified answer.

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