Question

How were the banks and the federal reserve mostly responsible for the Great Depression

Answer 1

Answer:

The banks and reserves continued to keep money in circulation and contributed to inflation. Rather than making money more valuable by having less money in circulation for appreciation, they just kept pouring money into the "system" so to speak, devaluing cash. To try to counteract the poverty hitting the nation, they kept throwing money out. But the sheer quantity of cash beong printed and circulate just lent to its lack of value.