10
QuizMultiple Choice

The Beginning of the Great Depression

Question 10 • MCPSS AL-Grade 6 United States Studies: The Industrial Revolution to the Present - Summer School 2026

Why did bank runs increase in the late 1920s?

Answer
A
New regulations increased taxes on bank savings.
B
Consumers believed that banks owned failing companies.
C
The government warned people that their money was at risk.
D
People feared that the banks would close permanently.

Explanation

Bank runs happen when many customers rush to withdraw their deposits because they fear a bank will fail and close. In the late 1920s, concern about banks’ stability led people to worry they might lose access to their money, so they withdrew it. The best answer is D, “People feared that the banks would close permanently.”

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