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ryzh [129]
3 years ago
5

The runs on banks during the Great Depression worsened the country's economic situation because the bank runs

Social Studies
2 answers:
11111nata11111 [884]3 years ago
6 0

Answer:

The correct answer is the option D: caused many banks to close and created an even greater shortage of money.

Explanation:

On one hand, the <em>Great Depression</em> is the name given to the situation that took place around 1929 due to bank runs that led to the explossion of the economic model of the United States that also affected the whole world basically.

On the other hand, a <em>''bank run'' </em>is the name given, in the financial world, to the term that refers to the <em>situation when the majority of the people of a society go the bank to withdraw their money in order to avoid losing it</em> because of the possible bankruptcy that the bank could face. Furthermore, in the situation of the Great Depression, these bank runs worsened the country's economic situation due to the fact that many<u><em> banks had to close because most of the people withdraw their money from them and that means that the bank did not have cash to operate and therefore it created an even greater shortage of money</em></u>.

Alborosie3 years ago
4 0
The answer is D because when it happened banks closed
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