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Pavlova-9 [17]
2 years ago
5

What caused many banks to fail during the early years of the Great Depression?

History
1 answer:
Naily [24]2 years ago
8 0

Answer:

A combination of unpaid loans, bad debts, and mass withdrawals

Explanation:

Deflation increased the real burden of debt and left many firms and households with too little income to repay their loans. Bankruptcies and defaults increased, which caused thousands of banks to fail. In each year from 1930 to 1933, more than 1,000 U.S. banks closed.

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