8
AssignmentMultiple Select

Roosevelt's Hundred Days

Question 8 • RMA FL-2100310-United States History Semester 1

If you said something like “take out all of my money,” you are like most Americans who lived during the Depression.What problems were created as more and more Americans removed their money from the banks? Check all of the boxes that apply.

Answer
A
Banks couldn’t survive if all of their customers withdrew their funds.
B
Banks were not required to hold enough cash to pay out everyone’s deposits.
C
This would have made the Depression worse.

Explanation

Banks kept only part of their customers’ deposits in cash and lent or invested the rest. So they could not pay everyone at once if many customers withdrew their money, and banks were not required to keep enough cash to cover all deposits. Bank failures and lost savings then reduced spending and lending, making the Depression worse.

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