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8_murik_8 [283]
3 years ago
15

How were the stock market crash and the collapse of the banking system related

History
2 answers:
Artemon [7]3 years ago
7 0
They are related because when the stock market crashed due the the exponentially increasing stock prices and the bubble it created instead of the federal reserve flooding the us in money, like it should have, they cut off the money supply creating a worse depression
zhuklara [117]3 years ago
4 0
Many banks had invested in the market and faced significant shortfall; several faced insolvency. The Crash also prompted a run on gold deposits, further reducing the amount of deposits banks had on hand. As a result, banks curtailed their lending activities, contributing to an economic slowdown.
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The New Deal affected future generations by creating agencies that still exist today. A perfect example is the Social Security Administration. This gives financial assistance to America's elderly population. This system is one that most employees currently pay into. This has been seen as a successful program, as it helps to pay for several different things (like medical costs) that senior citizens would otherwise struggle to pay for.
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