One result of the Stock Market Crash of 1929 was the ensuing banking collapse, which cascaded into more than 9,000 American banks that either went bankrupt or closed their doors to avoid bankruptcy between 1930 and 1933 and depositors lost over $2.5 billion in deposits. Group of answer choices True False

Question

Social Studies

Carolina Williams

20 February, 07:37

One result of the Stock Market Crash of 1929 was the ensuing banking collapse, which cascaded into more than 9,000 American banks that either went bankrupt or closed their doors to avoid bankruptcy between 1930 and 1933 and depositors lost over $2.5 billion in deposits. Group of answer choices True False

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Answers (1)

Know the Answer?

Claire Hancock · Answer 1

TRUE

Explanation:

The statement is TRUE

Between 1930 and 1933 depositors lost over $2.5 billion because of the stock market crash due to which 9000 American banks file bankruptcy or closed there door to protect them from Bankruptcy.

Because of this result, the nation's money supply decreases which resulted in deflation and the purchasing power of the country decreases.