In the 1920s, bank runs resulted from falling consumer confidence. Why was this disastrous for the banks?

When customers lost confidence, many tried to withdraw their deposits at the same time. Banks kept only part of their deposits available as cash and had lent or invested the rest, so they could not meet all the withdrawals and lacked the money needed to keep operating. That is why “Banks lacked the money that they needed to continue to operate” is correct.

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