Question

Economic Problems 1931-1932 1. The unemployment rate rose sharply. 2. Americans deeply in debt could not pay back their loans. 3. 4. People and businesses lost their savings. Which item should be number three on the list above? a. People in debt bought risky stocks with the money they had left. b. Con men tricked Americans with a wide variety of schemes. c. Banks began to lose so much money that they had to close. d. Foreign countries opened banks in the U.S.

Answer 1

Answer:

Option c

Explanation:

Great Depression in the United States started around September 4, 1929 leading to hardship and decline in the economy as a result of the stock market crash, bank failures, over-production and drought.However as the economic depression and crisis deepened, between 1931 to 1932, banks began to fail at alarming rates which lead to closure of banks. This was as a result of bankruptcies and defaults increased as people were unable too pay their loan couple with anxious people withdrawing their deposits, forcing banks to failure.It's estimated that 4,000 banks failed by the end of 1933 .